Ukraine's Metinvest Repays EU410 Million 7-Year Loan
Metinvest, Ukraine’s biggest steelmaker, repaid ahead of schedule the remaining 107.5 million euros ($142.3 million) of a seven-year, 410 million-euro loan.
The loan was given to Metinvest in January of 2008 by a syndicate of 10 banks to purchase plate-rolling facilities in Italy and the U.K., the company said in a statement published on its website late yesterday. ABN Amro Bank NV and BNP Paribas SA (BNP) managed the loan, according to the website.
“Repayment of the facility decreases our short-term financial obligations and total indebtedness ” and lowers “the share of senior secured debt, improving the credit rating of Metinvest’s public debt instruments,” Metinvest Chief Financial Officer Sergiy Novikov said in the statement.
The Donetsk, Ukraine-based steelmaker, controlled by billionaire Rinat Akhmetov, envisages capital expenditure of as much as $800 million next year and plans no big borrowing in 2013, Novikov said in a Nov. 1 interview. The company expects its earnings before interest, taxes, depreciation and amortization to drop this year of declining steel sales.
Early repayment of the loan is part of Metinvest’s optimization of debt structure, the company said. It was repaid from the cash accumulated by Metinvest.
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