Venezuelan national steel company EPSSN has won a €480mn loan from a syndicate of banks led by BBVA to finance a steel production project.
The overall investment for the project, entailing the purchase of equipment, steel production and rolling mills, is €3bn (US$4bn).
A total of €480mn (US$625mn) of this will be provided by a syndicate of banks including Brazilian national development bank Banco Nacional de Desenvolvimento Economico e Social and BBVA. This portion of the deal is insured through German export credit guarantee agency Euler Hermes.
Funding for the equipment is split into two phases. The first phase, which was signed recently, comes to €283mn, while the second phase, to be signed in 2012, totals approximately €200mn.
The equipment will be manufactured by Germany’s SMS Siemag, while Brazilian company Construtura Andrade Gutierrez was awarded the engineering, procurement and construction contract for the project.
The EPSSN project will promote companies that produce intermediate manufactured goods, and in turn will cover domestic demand for steel products − contributing to the country’s economic and social development.
Last Updated January 04, 2012
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