Metalloinvest signs agreement with 12 banks for receiving ECA backed financing
MOSCOW: Metalloinvest Finance, a leading global iron ore and HBI producer and supplier and one of the regional producers of high-quality steel, announced the signing of a framework agreement with 12 banks for executing deals under ECA backed financing. In line with Metalloinvest's Debt Management Strategy, the Company signed a framework agreement for partnership in financing under the guarantee of foreign export credit agencies with 12 banking partners. The signed framework agreement has been designed to optimise the financing process related to the Company's annual investment programmes, which include an acquisition of imported equipment, and defines general terms and conditions, a covenant package, a format of individual agreements for financing specific projects as well as a range of other aspects attributable to such kind of loans. The structure of the framework agreement provides the opportunity to introduce additional banking partners. MUFG acted as documentation agent for the deal. Alexey Voronov, Finance Director of Management Company Metalloinvest, commented: "As part of the financing for the Company's investment activities, we regularly raise funds for the purchase of foreign equipment under the guarantees of export agencies, which allow us to obtain long-term financing under favourable interest rates. The framework agreement with 12 international banking partners enables us to significantly reduce the duration of documentation preparation, simplify the implementation of finance projects, and optimise financial expenses and the conditions for specific deals." Christopher Marks, Head of Emerging Markets, MUFG EMEA, commented: "We were delighted to have co-ordinated the documentation process of the ECA framework agreement for Metalloinvest. The ECA framework agreement involves multiple international banks and is structured to allow for an unlimited number of ECA backed financings supported by a wide range of ECAs. We at MUFG believe that the structure, unique in the ECA financing space, will create a strong foundation for the company's future ECA backed financing."