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ABN Amro and SG are arranging a three-year US$250mn facility for Ukrainian steel maker Industrial Union of Donbas (IUD). The funds are for financing investment programmes at the Alchevsk Metal Works (AMW – the Luhansk oblast) and the Dniprovsky Metal Works after Dzerzhynsky (DMW, the Dnipropetrovsk oblast).

In February IUD signed an agreement with ABN for a US$50mn credit line. These funds were planned to be directed at financing export supplies of metal products of AMW and DMW.

In January, the company attracted a syndicated credit totalling US$85mn, arranged by Societe Generale and Natexis Banques Populaires. The syndicate also included Garantibank International (Holland), RZB, WestLB and Moscow Narodny.

IUD is a step nearer to buying Poland’s Huta Czestochowa mill, after signing a conditional sales agreement with mill owner Silesia Investment Fund. IUD will pay a total of Z1.25bn, Z350mn above the minimum price tender procedure leaders set in December 2004 and equaling an earlier offer made by India’s Mittal Steel, for shares in Huta Czestochowa and its 12 subsidiaries.

IUD was founded in 1995 and is the industrial association that owns large stocks of leading mining and smelting enterprises in Ukraine. It also implements projects in the coal and power spheres.