Metinvest Group, an international vertically integrated group of mining and metals companies, has successfully launched a new program of securitization of accounts receivable for its Italian rolling mills Metinvest Trametal and Ferriera Valsider in the amount of EUR 75,000,000.
Securitization is part of the Group’s financing strategy aimed at strengthening the debt portfolio with instruments that improve creditworthiness, reduce the cost of borrowed capital and create an optimal basis for attracting long-term working capital financing.
As part of the securitization of Metinvest Trametal and Ferriera Valsider, sell a portfolio of trade receivables to a Special Design Company (SPV) on a revolving basis. The acquisition of the receivables will be financed by the issuance of partially paid bonds in the amount of EUR 75,000,000 with variable interest rates and secured by the acquired receivables.
The bonds will be subscribed to by Coöperatieve Rabobank U.A. (Netherlands) through its asset-backed securities company Nieuw Amsterdam Receivables Corporation B.V. Finacity Corporation (USA), as the arranger of the transaction, provided initial and analytical support, structuring assistance, and the permanent administrator of the program, providing specific reporting. Centotrenta Servicing S.p.A. will be responsible for monitoring and reporting services, compliance of the transaction with applicable laws and prospectuses, as well as administrative, accounting and tax support of SPV.
Finacity Corporation is part of the Greensill group of companies, which specializes in the structuring and implementation of receivables-secured capital financing programs, vendor and payables financing, and program support and administration. Finacity Corporation is currently providing financing and administration of receivables in the amount of approximately US $ 100,000,000,000 in annual terms. Finacity Corporation is represented in the USA, Europe and Latin America, the company cooperates with issuers and debtors in 175 countries of the world.
Allen & Overy advised Metinvest Trametal and Ferriera Valsider on all legal aspects of this transaction. Gattai, Minoli, Agostinelli & Partners was hired as legal advisor to Coöperatieve Rabobank U.A. (Netherlands).
Yuri Ryzhenkov, CEO of Metinvest Group
– This landmark agreement is part of our ambitious strategy to expand our client base and provide additional, more flexible financing solutions sales in Europe. The securitization will also allow interaction with new financial institutions that want to participate in the transaction and provide additional liquidity to the Group. I would like to thank Rabobank for its long-term support of Metinvest Group and congratulate Finacity Corporation as a new and important partner for us.
Adrian Katz, President of Finacity Corporation
– This transaction marks the second successful closure of our agreement to securitize trade receivables in Italy in the past year. We are very pleased to establish a partnership with Metinvest Group not only through our role in this transaction and we hope to expand cooperation between our companies ”.