MMK and Azovstal will provide DKHZ with refundable financial aid for a total of UAH 7.5 billion

Mariupol Metallurgical Plant named after Ilyich (MMK, Donetsk region) and Azovstal (both – Mariupol, Donetsk region), which are part of the Metinvest group, will provide PJSC Dneprovsky Coke and Chemical Plant (DKHZ, Kamenskoe, Dnepropetrovsk region), also included in the group, returnable financial assistance for a total of UAH 7.5 billion by October 15 this year.

According to the issuers’ data in the information disclosure system of the National Securities and Stock Market Commission, such decisions were made by the supervisory boards of metallurgical plants on September 2, 2021.

It is clarified that Azovstal will provide DKHZ UAH 2.1 billion, MMK – UAH 5.4 billion UAH.

“The loan of funds is carried out on the basis of interest-free repayable financial assistance and does not provide for the accrual of interest or the provision of other types of compensation such as payments for the use of such funds. The return of financial assistance by the borrower can be made in different amounts ( parts), however, the final settlement must be made no later than October 15, 2021, “- stated in the messages of the companies.

As reported, the mining and metallurgical group” Metinvest “through PrJSC” DKHZ “acquired an integral property complex (CEC) PJSC “Dneprovsky Metallurgical Plant” for UAH 9.17 billion (about $ 340 million). The auction was held as part of the DMK bankruptcy case.

DMK specializes in the production of cast iron, steel, rolled products and consumer goods. The enterprise was previously controlled by the ISD corporation.

Dnipro Coke Plant PJSC produces coke products.

According to the report of the parent company of Metinvest Group for 2020, Metinvest BV (Netherlands) owns 100 % of shares in DKHZ.

Metinvest is a vertically integrated mining group of companies that manages assets at every link in the production chain, from iron ore and coal mining and coke production to the production of semi-finished products and final products from steel, rolled pipes and coils, and also production of other products with high added value. The group consists of mining and metallurgical enterprises located in Ukraine, Europe and the USA, has a sales network covering all key world markets.

The main shareholders of Metinvest are the group ” SCM (71.24%) and Smart Holding (23.76%), jointly managing the company.

Metinvest Holding LLC is the managing company of Metinves Group t “.

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