Mandated lead arrangers Calyon and Credit Suisse is expected to close a US$300mn three-year facility for the Ukrainian steel company, Industrial Union of Donbass (IUD) towards the end of the month.


Unusually for the Ukrainian market and IUD, the facility is unsecured. Paying a margin of around 180 basis points, it is also priced lower than the borrower’s previous syndications.
In June 2006, IUD raised a US$350mn loan, via a dual tranche facility raised through the IFC and mandated lead arrangers and bookrunners Citi and Soci&eaute;té Générale IFC provided US$100mn, while the US$250mn B loan was syndicated out to 17 commercial banks and institutions via the two MLAs.


This loan was used to support IUD’s capital investment programme to modernise operations, ensure the company meets international standards on environmental issues, improve energy efficiency and reduce operating costs.