Novolipetsk Steel (NLMK), a leading Russian steel producer, has successfully closed a credit agreement to finance the purchase of imported equipment guaranteed by leading export credit agencies. The EUR524million facility will be used to finance the purchase of equipment upon 19 commercial agreements from 7 leading European engineering companies. The facility, which bears a weighted average interest rate of EURIBOR + 1.53, has a maturity of 7 – 10 years.
The funds raised by the Company will be used to finance projects that are part of NLMK’s Technical Upgrade Program. This facility will allow the Company to carry forward the financing load of the capex program.
The funds will be provided by a range of major international banks including Société Générale Corporate & Investment Banking, Bayerische Landesbank, Deutsche Bank, and ING Wholesale Banking under guarantee from the Export Credit Agencies (ECA), Hermes, OeKB, ODL and ONDD.