EBRD confirms $85M loan for Ukraine’s ISTIL: banks
The European Bank for Reconstruction and Development (EBRD) announced on Friday the signing of an $85 million loan for Donbass-based ISTIL (Ukraine), which was partly syndicated to commercial banks. The facility has an A/B structure. The A loan, provided by mandated lead arranger EBRD, consists of a $35 million working capital facility and a $15 million, five-year term loan. The term loan has a one-year grace period and the working capital loan has a five-year availability period with a 6-month clean up. The B loan consists of a $50 million, five-year working capital facility with a 6 month clean up and a $30 million, five-year term loan that includes a one-year grade period. On the B loan, co-arranger BNP Paribas provided $23 million, while arrangers Cordiant and ING provided $13.5 milllion each. The working capital loan will be used for increased working capital needs and to replace the existing working capital facility, while the term loan will finance capex to improve quality control and also partially refinance Istil Group loans between 2004 and 2006. Mini Steel Mill ISTIL (Ukraine), is the only stand alone modern mini steel mill in Ukraine based on electric arc furnace (EAF) and continuous casting technology. The company produces steel products, such as rolled and cast billets and special quality bars that are sold to rolling mills, seamless pipe manufacturers, engineering plants, distributors and stockists worldwide.