Nippon Export and Investment Insurance (NEXI), a Japanese reinsurer, will provide Mexican steelmaker ArcelorMittal Mexico reinsurance for a hot strip mill complex manufactured by Primetals Technologies, the company said. Reinsurance is a form of insurance purchased by insurance companies to mitigate risk, limiting the amount of loss an insurer can suffer.
NEXI said it will provide reinsurance on an export credit facility awarded by the Austrian export credit agency, OeKB, for the company’s hot strip mill complex.
“This reinsurance will be offered based on the reinsurance agreement concluded between OeKB and NEXI on July 1, 2003, as second transaction underwritten under the agreement,” NEXI said.
The company did not provide specifics about the payment it will make, but said the payment will cover part of a “financing” granted by OeKB loan to back up a hot strip mill complex manufactured by Primetals Technologies.
“An Austrian subsidiary of Primetals Technologies is also engaging in the export as prime contractor, as well as German and Japanese subsidiaries of Primetals Technologies and an Italian manufacturer as sub-contractors,” NEXI added.
NEXI said four other export credit agencies, including Austria’s OeKB, Germany’s Euler Hermes, Italy’s SACE and Japan’s NEXI will “jointly support” the Primetals transaction.