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NLMK Raises Funds to Finance Technical Upgrade Program
01/04/2010 - Novolipetsk Steel closes a credit agreement to finance the purchase of imported equipment guaranteed by leading export credit agencies. The €524 million facility will be used to finance the purchase of equipment upon 19 commercial agreements from seven leading European engineering companies.
Novolipetsk Steel (NLMK) has successfully closed a credit agreement to finance the purchase of imported equipment guaranteed by leading export credit agencies.
The €524 million facility will be used to finance the purchase of equipment upon 19 commercial agreements from seven leading European engineering companies. The facility, which bears a weighted average interest rate of EURIBOR + 1.53, has a maturity of seven to 10 years.
The funds raised by the company will be used to finance projects that are part of NLMK’s Technical Upgrade Program. The company says that this facility will allow it 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.
Novolipetsk Steel is one of the world’s leading steel producers, with 2008 revenue exceeding USD11 billion and output over 10.5 million tonnes. Key production facilities located in Russia, the European Union, and the U.S. employ nearly 68,000 people. The Russian company produces a range of steel products, including slabs and billets, hot-rolled, cold-rolled, galvanized and electrical steel, and other high value-added products. In 2008, NLMK delivered its products to customers from 70 countries.
Novolipetsk Steel is one of the world’s leading steel producers, with 2008 revenue exceeding USD11 billion and output over 10.5 million tonnes. Key production facilities located in Russia, the European Union, and the U.S. employ nearly 68,000 people. The Russian company produces a range of steel products, including slabs and billets, hot-rolled, cold-rolled, galvanized and electrical steel, and other high value-added products. In 2008, NLMK delivered its products to customers from 70 countries.
