PJSC «DONETSKSTEEL» - Iron and Steel Works» informs of attraction the syndicated loan in the amount USD 500 mio

PJSC «DONETSKSTEEL» - Iron and Steel Works» informs  of attraction  the  syndicated loan in the  amount USD 500 mio. The  funds  were made available by  two tranches of  USD 225 mio and USD 275 mio with the maturity 3 and 5 years respectively. Interest rate for the first tranche is Libor 1m + 6,5%, for the second tranche is Libor 1m + 7,5%.

The mandated lead arrangers that ensured realization of this deal were ING BANK N.V. (the Netherlands), PJSC «ING Bank Ukraine» (Ukraine), UNICREDIT BANK AG (Germany), PJSC "UKRSOTCBANK" (Unicredit Group, Ukraine), VTB BANK (FRANCE) SA (France), VTB BANK (DEUTSCHLAND) AG (Germany), RAIFFEISEN BANK INTERNATIONAL AG (Austria), PJSC "RAIFFESEN BANK AVAL" (Ukraine).

The lead arranger also was EAST-WEST UNITED BANK S.A. (Luxembourg).

Company «Donetsksteel» (Ukraine) and ENERGOTRADING LIMITED (Hong Kong) acted as the borrowers.

The amount and conditions of the loan are unprecedented for the current market both for «Donetsksteel» and for comparable companies in the post-Soviet space, that is caused by the experience and results of «Donetsksteel» in the domestic and external markets, the quality of production, the achievements in the development of innovative projects, creation of new job places, follow up the principle of socially responsible business. Such confidence of Western banks and domestic banks with foreign capital to «Donetsksteel» once again confirms the transparency and investment attractiveness of the borrower.

The loan is secured by the pledge of export contracts, the pledge of export revenue and cash at the accounts of the company and also by suretyship of main operating companies of the Group.

The loan proceeds gained in this deal «Donetsksteel» will use for repayment of debt restructured earlier which put certain limits on the company mainly concerning the volumes of capital expenditures, the rest of funds will be used for realization of investment projects of the Group.

After cancellation of the limitations caused by restructured agreement  valid earlier «Donetsksteel» will have the possibility to complete the construction of modern casting and rolling complex at the Donetsk metallurgical plant which is being realized according to the priorities of «State program for intensification the economy of Ukraine in 2013-2014»  approved by the President of Ukraine Victor Yanukovich. Also the further modernization and development of one of the biggest coal mine of Ukraine – Colliery Group «Pokrovskoe» will be continued. In addition «Donetsksteel» will continue to direct loan and own funds into consistent modernization contributing to improvement of safety conditions and environmental compatibility of its production facilities, increase of competitiveness of the product output.

Raising of such jumbo loan by «Donetsksteel» company gives evidence that Ukrainian economy and its entities may be of interest to foreign investors provided the condition of conducting open, modern and innovative business.

Attraction of the loan is not only the guaranty of successful realization the program of modernization and innovative development of the Group, but also is the positive appreciation from the leading world financial institutions and additionally confirms the right vector of development chosen by the company.

 

«Donetsksteel» — vertically-integrated group of companies. Main production facilities are situated in Eastern Ukraine. One of the biggest producer of high-quality coking coal concentrate, coke and steel products in the CIS.

2013-08-15 08:45