Mandated lead arrangers ABN AMRO, Deutsche Bank and ING Wholesale Banking have just signed a €365mn loan agreement with the Russian steel producer Magnitogorsk Iron and Steel Works. Euler Hermes is providing insurance cover for the transaction, the export credit agency’s largest financing for a Russian corporate requiring corporate risk cover.
The facility carries a 10-year tenor, and will be used to finance the supplies and services from the German firm Demag for the construction of a plate mill and a slab caster.


Construction of the 5,000mm plate mill is the borrower’s largest project for the last 10 years. Once implemented, the project will be producing steel plates up to 4,850mm to be sold to the oil and gas sector, as well as for the construction of ships, bridges and heavy machinery. Germany’s Demag won the contract in November 2006.


Within the group of arrangers, ABN AMRO is acting as documentation agent, and Deutsche Bank is acting on behalf of Euler Hermes, and ING Wholesale Banking is the facility agent. Euler Hermes is providing 85% cover for these supplies and services.