The Venezuelan National Steel Company (EPSSN) has received a syndicated loan for the purchase of German machinery.

The US$207mn financing is the second phase of a US$3.8bn deal signed in December 2011 and involving a syndicate of banks led by BBVA in conjunction with its Venezuelan subsidiary BBVA Provincial, and involving the ministry of popular power for planning and finance of Venezuela.

The first phase totalled US$362mn, for an overall loan of US$570mn, entirely insured by Germany’s export credit agency, Euler Hermes.

The equipment will be manufactured and installed by German firm SMS Siemag, while Brazil’s Construtora Andrade Gutierrez will take care of the engineering, procurement and construction (EPC).

The total value of the project, which consists of steel production and rolling mills, is around US$3.8bn. It is expected to generate 8,000 jobs directly and 20,000 indirectly during the construction phase. Once operational in early 2015, the plant will serve the Venezuelan domestic steel industry.