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Kinstellar advises ArcelorMittal Kryvyi Rih on a USD 350 million EBRD loan
Kinstellar, Kyiv, Ukraine,
Fri, Jan 5, 2018
January 2018 – Kinstellar has acted as Ukrainian legal counsel to Public Joint Stock Company ArcelorMittal Kryvyi Rih, Ukraine’s largest steel mill, in connection with a USD 350 million loan facility provided by the European Bank for Reconstruction and Development (EBRD).
According to the EBRD, it finances the largest private sector investment programme in Ukraine in recent years. The loan to ArcelorMittal Kryvyi Rih will allow the company to modernise its facilities for sintering and to reline one of the plant’s blast furnaces. The project supports ArcelorMittal Kryvyi Rih in reducing its carbon dioxide and other harmful emissions and, most significantly, will enable the company to reduce dust emissions from the current 14,700 tonnes per year to approximately 3,000 tonnes per year.
The loan facility has been structured as an A-loan of up to USD 200 million to be provided by the EBRD and a B-loan of up to USD 150 million that will be syndicated to commercial banks.
Commenting on the transaction, Andriy Nikiforov, Counsel and Head of Kinstellar’s Banking and Finance Practice in Kyiv, said: "We are delighted to support ArcelorMittal Kryvyi Rih in this landmark deal that allows the c.ompany to improve not only its competitiveness but also its energy efficiency and environmental performance."
Kinstellar’s team advising on the transaction was led by Andriy Nikiforov (Counsel) and included Serhiy Mykhaylyk and Yulia Eismont (Associates).
ArcelorMittal Kryvyi Rih is owned by global steel maker ArcelorMittal, the world’s leading steel and mining company with revenues in 2016 of USD 56.8 billion
USUBC NOTE: ArcelorMittal Kryvyi Rih is a member of U.S.-Ukraine Business Council (USUBC), Wash, D.C.