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Ilyich Iron and Steel Works

Metinvest increases the amount of its pre-export facility from $300 mln to $700 mln

29 July 2010 // Press service Metinvest Group

Following substantial oversubscription during syndication, Metinvest (the largest mining and steel company in Ukraine) decided to increase the amount of its 3-year syndicated pre-export finance facility from $300 million to $700 million. The funds raised will be utilized to further modernize Metinvest’s assets along with other corporate purposes. The facility was signed on 23 July 2010 and carries a margin of 5.5%.

The facility is led by Deutsche Bank AG as Coordinator, Facility Agent and Security Trustee. The facility closed with a syndicate of 14 banks: Open Joint-Stock Company “ALFA-BANK”,BNP Paribas (Suisse) SA, CREDIT SUISSE, Deutsche Bank AG, ERSTE GROUP BANK AG, Gazprombank (Open Joint-stock Company), ING Bank N.V., NATIXIS,Raiffeisen Zentralbank Österreich Aktiengesellschaft, SBERBANK,VTB Western Europe Subgroup (VTB Bank (Austria) AG, VTB Bank (Deutschland) AG, VTB Bank (France) SA), and WestLB AG.

"Successful placement of Eurobonds and sound financial performance of the Company in 2009 supported the substantial demand of investors to participate in this facility. Despite turbulence on global financial markets, the sum of investors’ bids we have received so far exceeded by more than 3 times the initially announced loan amount" – notes Sergiy Novikov, Metinvest’s CFO.

According to the data provided by Thomson Reuters Loan Pricing Corp. (LPC) this is the largest loan facility to be secured by a Ukrainian private business for the last two years. Ukraine’s largest previous loan was a $1.5 billion syndicated facility that Metinvest signed in 2007

For editors: 

Not for release, directly or indirectly, in the United States of America, Australia, Canada or Japan. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to US persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. These materials do not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States. No public offering of the securities will be made in the United States.

Metinvest is an international vertically integrated mining and steel group of companies. Production facilities of Metinvest produce enough steelmaking raw materials to meet its own demand and to be the key supplier to major steelmaking companies in Ukraine, Europe and Asia. The major shareholders of Metinvest are SCM Group (75% ownership) and Smart-Holding (25% ownership) partnering in Company’s management.

METINVEST HOLDING, LLC is the managing company of Metinvest Group.