Metalloinvest (the “Company”), a leading global iron ore and hot briquetted iron producer and supplier and one of the regional high-quality steel producers, announces changes to its pre-export financing facility (“PXF-2019 /2 "), opened by a club of seven international banks at the end of 2019.
A mechanism is included in the loan documentation for a syndicated loan for 200 million euros and valid until May 2026, according to which the interest rate the rate was tied to the Company's key performance indicators (KPI) for sustainable development.
The following KPIs are defined: development and implementation of a plan to reduce greenhouse gas emissions, reduce emissions of pollutants into the air, and increase the share of processing waste. The achievement of the KPIs will be measured based on the results of two milestones in 2022 and 2024. based on independently certified sustainability report.
Societe Generale acted as a coordinator in the implementation of a mechanism for linking pre-export financing ("PXF-2019/2") to indicators for sustainable development.
Alexey Voronov, Deputy Director General for Finance and Economics of the Company, said: “We are pleased to announce the transformation of a pre-export loan in the amount of 200 million euros into green financing, which became possible due to the implementation of long-term environmental goals. This step demonstrates our commitment to implementing a comprehensive sustainable development finance strategy. In particular, this year, new ESG ratings were received from leading international agencies, which reflect the Company's strong position in the global metallurgy. We look forward to implementing a number of new initiatives and continuing to improve our sustainable development practices and policies. ”
Stephanie Clement de Givry, Head of Metals & Metals Finance at Societe Generale, commented: “Societe Generale is pleased to support Metalloinvest's commitment to sustainable and responsible production and to assist the Company as the Sustainability Coordinator in its first deal using key performance indicators. By tying the financial parameters of its loan to the climate and environmental KPIs that are essential for the future of the iron ore and steel industry, Metalloinvest has made an important commitment to contribute to a more sustainable economy. ”
This is the company's second Sustainability-Linked Loan. In 2019, ING Bank opened a credit line for Metalloinvest for $ 100 million (or the equivalent in euros), the interest rate of which is tied to the EcoVadis ESG rating.