30 Dec 2009 13:06

NLMK raises EUR 524 mln to finance technical upgrade program

MOSCOW. Dec 30 (Interfax) - Novolipetsk Steel (NLMK) has raised a loan facility of EUR524 million to finance the purchase of imported equipment guaranteed by leading export credit agencies, the Russian steel major said in a statement.

The funds will be provided by a range of major international banks including Societe Generale Corporate & Investment Banking, Bayerische Landesbank, Deutsche Bank, and ING Wholesale Banking under guarantee from the Export Credit Agencies (ECA), Hermes, OeKB, ODL and ONDD.

The facility, which bears a weighted average interest rate of EURIBOR + 1.53, has a maturity of 7 - 10 years.

The facility will be used to finance the purchase of equipment under 19 commercial agreements from seven leading European engineering companies.

The funds raised 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.