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 the opening of a pre-export finance facility ("PXF-2021") by a club of 10 international banks.
In order to improve the parameters of the loan portfolio and the schedule of debt repayment in US dollars, the Company opened a new credit line for up to 350 million dollars with a floating interest rate. The loan term is 5 years with uniform monthly amortization after the grace period (4 years). At the same time, it is possible to extend the loan term up to 7 years.
Alexey Voronov, Deputy Chief Executive Officer for Finance and Economics of the Company, commented: “The PXF-2021 pre-export financing line was concluded at the lowest rate among all dollar loans ever attracted by the Company for a period of more than three years. At the same time, the direction of funds for refinancing PXF-2017 and PXF-2018 will reduce the debt to maturity in the period 2021–2022. to below $ 100 million. Since the beginning of 2021, the Company has already reduced its loan portfolio by RUB 10 billion. due to early redemption of ruble bonds of BO-02 and BO-08 series. Currently, other options for reducing the level of total debt during 2021 are being worked out. "
Peter Kindt, Head of Mining and Fertilizers EMEA at ING Bank, commented: “Metalloinvest reaffirms its leadership in PXF in the CIS with a new 5-year loan with two extension options. This is convincing evidence of Metalloinvest's understanding with banks, 10 of which took part in this new deal. ING is proud to have acted as a documentary agent for the third time in a row, which reflects our good partnership with the company. ”