Metinvest signs six-year, EUR 15 mln loan facility

Metinvest Trametal, an Italian re-roller of Ukraine’s
largest steelmaker Metinvest (METINV), has signed a EUR 15 mln loan facility
with Cassa Depositi e Prestiti, an Italian bank, according to a July 15 press
release.

The six-year loan has a two-year grace period and is
being issued under an Italian government program to support investments and
activities in Italy following the COVID-19 pandemic, according to the release.
The program is guaranteed by SACE, the Italian state-owned export credit agency
(ECA), Metinvest said.

Metinvest plans to use the proceeds for capital
investments at Trametal, according to its release.

Dmytro Khoroshun: Metinvest’s
ability to attract Capex-related, ECA-guaranteed loans is positive because this
debt is longer-term and might bear lower interest rates than other available
financing sources.

Metinvest has been growing its portfolio of such loans
over the past several years, but its size remains modest, around USD 155 mln,
or 5% of the holding’s total debt.

We maintain our negative view on METINV bonds.