The European Bank for Reconstruction and Development (EBRD) has signed an agreement that promises to provide a $350 million syndicated loan to PubJSC ArcelorMittal Kryvyi Rih, Interfax-Ukraine reports.
“The EBRD” has signed the biggest project in Ukraine this year, which is also the largest private sector investment in Ukraine in recent years” EBRD Senior Advisor Anton Usov posted on Facebook December 22nd.
Aiming to support the organization’s modernization and environmental upgrade. In particular, the investment will help to upgrade the mill’s facilities for sintering (an early stage in the process of refining iron ore) and reline one of the plant’s blast furnaces. The loan will also allow the company to add two new continuous casters, as well as to improve its overall energy efficiency, competitiveness, and environmental performance.
CEO of PubJSC ArcelorMittal Kryvyi Rih Paramjit Kahlon states: “The project proves our commitment to significantly reduce our environmental footprint. We are grateful for the EBRD’s support and guidance in making this important investment in us and the region.”
The project supports the Bank’s Green Economy Transition policy, significantly cutting ArcelorMittal’s CO2 emissions. Also, dust emissions are expected to decrease from the current 14,700 tons per year to around 3,000 tons annually.
The loan will be structured as an A-loan of up to $200 million provided to the Bank’s own account and a B-loan of up to $150 million, which is to be syndicated to commercial banks.
It will help the company to finance investments worth $1.1 billion at the Kryvyi Rih mill, which is owned by the global steel maker ArcelorMittal. The main sales markets for metal goods are located in the Middle East, Europe, Africa, Eastern Europe and the European Union. Mittal Steel Corporation purchased 93.02% of shares of OJSC Kryvorizhstal at an open auction in 2005 for UAH 24.2 billion.