DJ Metalloinvest becomes first Russian iron ore & steel company to incorporate sustainability-linked provisions into its pre-export finance facility
Metalloinvest Finance Designated Activity Company (IRSH)
Metalloinvest becomes first Russian iron ore & steel company to incorporate
sustainability-linked provisions into its pre-export finance facility
22-Dec-2020 / 12:40 MSK
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The issuer is solely responsible for the content of this announcement.
Metalloinvest becomes first Russian iron ore & steel company to incorporate
sustainability-linked provisions into its pre-export finance facility
Moscow, Russia - 22 December 2020 - Metalloinvest ("the Company"), a leading
global iron ore and HBI producer and supplier, and one of the regional
producers of high-quality steel, today announces changes to its credit line
for pre-export financing ("PXF-2019/2"), opened with a club of seven
international banks at the end of 2019.
The documentation for a syndicated loan in the amount of EUR 200 mn valid
until May 2026 was amended to incorporate a mechanism according to which the
interest rate is linked to the Company's key performance indicators (KPIs)
as part of its environmental strategy priorities.
The following KPIs were defined: development and implementation of a climate
action plan aimed at reducing greenhouse gas emissions, reduction of
atmospheric air emissions, and increase of the share of technological waste
recycled. The achievement of the KPIs will be evaluated based on the results
of two milestones in 2022 and 2024, based on the independently verified
sustainability report of the Company.
Societe Generale acted as a Sustainability Coordinator for introduction of
the sustainability mechanism to the PXF-2019/2 facility.
Alexey Voronov, Deputy CEO - Chief Financial Officer of Metalloinvest,
commented:
"We are pleased to announce the transformation of the pre-export finance
facility in the amount of EUR 200 mn into a sustainability-linked loan,
which was made possible by the implementation of long-term environmental
goals. This step shows our commitment to implementing a comprehensive
financial strategy for sustainable development. Most notably, this year
Metalloinvest received new ESG ratings from leading international agencies,
which proves the Company's strong position in the global metals & mining
industry. We look forward to implementing a number of new initiatives and
continuing to improve our sustainable development practices and policies."
Stephanie Clement de Givry, Global Head of Mining, Metals and Industries,
Societe Generale, commented:
"Societe Generale is delighted to support Metalloinvest's commitment to
sustainable and responsible production and to have supported the Company as
Sustainability Coordinator in its first KPI-related transaction. By
committing to link the financial performance of its loan to a set of climate
and environmental KPIs, highly relevant for the future of the iron ore and
steel industry, Metalloinvest took an important engagement to contribute to
a more sustainable economy."
This is the Company's second Sustainability-Linked Loan. In 2019, ING Bank
opened a credit line for Metalloinvest in the amount of USD 100 mn (or the
equivalent in EUR), where the interest rate is linked to the EcoVadis
ESG-rating.
If you have any questions, please contact us:
Artem Lavrischev
Investor Relations
E: ir@metalloinves.com
T: +7 (495) 981-55-55, ext. 7243
Anton Troshin
Public Relations
E: pr@metalloinvest.com
Tel.: +7 (495) 981-55-55, ext. 7629
Metalloinvest is a leading global iron ore and merchant HBI producer and
supplier, and one of the regional producers of high-quality steel. The
Company has the world's second-largest measured iron ore reserve base and is
one of the lowest-cost iron ore producers. Metalloinvest is wholly owned by
Holding Company USM LLC. Alisher Usmanov is the major beneficiary of Holding
Company USM LLC (49%).
ISIN: XS0918297382
Category Code: MSCL
TIDM: IRSH
Sequence No.: 90119
EQS News ID: 1156851
End of Announcement EQS News Service
(END) Dow Jones Newswires
December 22, 2020 04:40 ET (09:40 GMT)
