30 December 2009
NLMK raises funds to finance its technical upgrade program
Novolipetsk Steel (NLMK), a leading Russian steel producer, has successfully closed a credit agreement to finance the purchase of imported equipment guaranteed by leading export credit agencies. The EUR524million facility will be used to finance the purchase of equipment upon 19 commercial agreements from 7 leading European engineering companies. The facility, which bears a weighted average interest rate of EURIBOR + 1.53, has a maturity of 7 – 10 years.
The funds raised by the Company 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.
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.
About NLMK Group
Novolipetsk Steel (LSE: NLMK) is one of the world’s leading producers of steel, with 2008 revenue exceeding USD11 billion, output over 10.5 million tonnes. The key production facilities located in Russia, the EU and USA employ nearly 68,000 people.
The Company produces a wide 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.
NLMK shares are traded in Russia on MICEX and RTS, and GDRs – on the London Stock Exchange.