Societe Generale is one of the counterparts for a €200 mln credit line for Metalloinvest

    05 December

Societe Generale Group in the membership of the club of 7 international banks opened a new credit line for pre-export financing (the “PXF-2019/2”) for Metalloinvest, a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel. PJSC ROSBANK acted as a passport bank in the deal.

The new PXF-2019/2 amounts to EUR 200 mn and has a 6.5 year tenor with a semiannual amortisation after the grace period set at 5.5 years. The interest rate is fixed for the entire loan period.

The agreement has been reached in accordance with the Company’s Debt Management Strategy. After disbursement, the funds will be used to improve the parameters of the Company’s loan portfolio, including through enhancement of the maturity profile, diversification of foreign currency liabilities and a reduction in borrowing costs.

Alexey Voronov, Finance Director of Management Company Metalloinvest, commented: “This loan has the longest maturity for the pre-export financing ever attracted by the Company from international banks. Further, the parties intend to link the loan pricing to the sustainable development indicators.”

Stephanie Clement de Givry, Global Head of Metals and Mining at Societe Generale, commented: “We are delighted to continue demonstrating SG support to Metalloinvest with the closing of a new EUR 200 million syndicated facility. This facility is another groundbreaking transaction for Metalloinvest in terms of tenor and conditions showing one more time that the bank market recognize the high quality of the company. Metalloinvest’s stated intention to convert this facility into a sustainability financing brings another dimension to this financing and underlines the company’s strong commitment to long term sustainability and responsibility.”

“It is important to notice the high-class expertise of the company team that is historically one one of the most significant players on structured lending market. We also hope that the accumulated experience of Societe Generale in the sphere of ESG financing arrangement will help the bank to render extra use to the deal on the following stages and to confirm the leader positions and strategy of Metalloinvest in the field of sustainable and socially responsible development”, - Patricia Isaeva, First Vice-President of Rosbank, Managing Director of Global Banking and Advisory Russia.