December 18, 2020 – Black Sea Trade and Development Bank (hereinafter “BSTDB”) and Metinvest Group, a vertically integrated group of mining and metallurgical companies (hereinafter “Metinvest” or “Group”), today announced the signing of a loan agreement in the amount of 62 million euros to finance and refinance the purchase of machinery and equipment for its iron ore enterprises.
The seven-year line of credit provides a two-year grace period for repayment of the principal.
Yuri Ryzhenkov, General Director of Metinvest Group
– This news is the result of a large-scale work that began in July this year, and is an important milestone in our history, since this is the first loan from Metinvest Group from an international financial institution. We share the values of the Black Sea Trade and Development Bank. This line of credit will be aimed at improving the efficiency of our business and increasing the overall contribution to improving the economic well-being of the Black Sea region.
Alexander Lyubareva, Director of the Financial Management Department of Metinvest Group
– Working with an international financial institution has become a new and very positive experience for Metinvest Group. I would like to express my gratitude to the team of the Black Sea Trade and Development Bank for their support throughout the entire process and assistance in concluding this agreement. We are proud of the new partnership and are ready to develop it.
Dmitry Pankin, President of the Black Sea Trade and Development Bank
– We are pleased to help Metinvest Group, a leading manufacturer and employer in Ukraine, in implementing a development program aimed to improve production technologies, increase efficiency and reduce environmental impact. Given the importance of this sector for the country and its export potential, this agreement will be of great importance for the development of Ukraine. As a regional development bank, we welcome the Group’s plans to purchase new equipment and export its products to other member countries of the Black Sea Trade and Development Bank, thus strengthening regional cooperation.
Metinvest Group is a vertically integrated group of mining and metallurgical companies that manages every link in the supply chain from mining to ore and coal processing and the production and sale of semi-finished and finished steel products. The structure of the Group includes mining and metallurgical enterprises located in Ukraine, Europe and the USA, as well as a sales network that covers all major world markets. For the purposes of preparing financial statements, the Group’s business is divided into two segments – Metallurgical and Mining. The Group’s strategic vision is to become Europe’s leading vertically-integrated steel producer, delivering robust growth and profitability and investment returns above industry standards despite cyclical markets. For the 9 months ended September 30, 2020, the Group has a revenue of US $ 7.6 billion and an EBITDA margin of 18%. More information is available at metinvestholding.com.
Black Sea Trade and Development Bank (BSTDB) is an international financial organization founded by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine. The BSTDB head office is located in Thessaloniki, Greece. The BSTDB supports economic development and regional cooperation through the provision of loans, credit lines, equity capital and guarantees for projects and trade finance in the public and private sectors of the participating countries. The authorized capital of the bank is EUR3.45 billion. Credit rating agency Standard and Poor’s has assigned the BSTDB a long-term rating at A-, and Moody’s at A2. Additional information on the BSTDB is available at bstdb.org.