Metinvest makes new securitization deal on Italian receivables

MOSCOW. July 18 (Interfax) - Metinvest B.V., the Dutch parent company of Ukrainian steel and mining group Metinvest, has launched a new accounts receivable securitization program for its Italian mills Metinvest Trametal and Ferriera Valsider totalling up to 50 million euros.

The facility, which has a maximum duration of five years and a one-year rolling commitments, will support sales in the European Union and improve the working capital position of the group's Italian rolling mills, Ukrainian media reported Metinvest as saying in a press release.

"The transaction has been structured by Banca Akros S.p.A (Gruppo Banco BPM) through an Italian Law 130/99 special purpose vehicle. It involves the issuance of partially paid variable funding senior notes, backed by a portfolio of trade receivables originated by Metinvest Trametal and Ferriera Valsider. Banco BPM S.p.A. through Banca Akros S.p.A. acts as senior investor in the transaction," Metinvest said.

"This landmark deal is part of Metinvest's strategy to diversify and strengthen the trade finance portfolio," Metinvest CEO Yury Ryzhenkov said in the press release.

Metinvest is a vertically integrated group with mining operations and steel plants located in Ukraine, Italy (two mills) and the United Kingdom (one mill). The company is 71.24% owned by SCM and 23.76% by Smart Holding.