The Russian steelmaker Novolipetsk Steel (NLMK) has announced that it has closed a €524 million credit agreement to finance the purchase of imported equipment, backed by guarantees from leading export credit agencies.
Accordingly, the €524 million facility will be used by NLMK to finance the purchase of equipment in the context of 19 commercial agreements with seven leading European engineering companies, concluded within the framework of NLMK's technical upgrade program, and will allow NLMK to carry forward the financing load of its capital expenditure program.
The facility, which bears a weighted-average interest rate of EURIBOR + 1.53, has a maturity of 7-10 years.
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.