Industrial Union of Donbass (IUD) has secured a US$85mn steel pre-export finance facility through a syndicate of international lenders led by SG Corporate & Investment Banking.
SG acted as co-ordinating mandated lead arranger, sole bookrunner, facility and security agent and lender.
Natexis Banques Populaires acted as mandated lead arranger and lender.
The syndicate includes GarantiBank International, RZB and WestLB as arrangers and Moscow Narodny Bank as co-arranger. The facility documentation was signed on January 26, 2005.
IUD is one of the largest industrial holdings in Ukraine, which regroups approximately 40 Ukrainian and foreign companies in the steel, mining, machine building & engineering, energy, construction, telecommunications and tourism industries.
The facility will be used to finance working capital needs of IUD in connection with the production and export of steel products manufactured by its main production entities, OJSC Alchevsk Iron & Steel Works (AMK) and OJSC Dneprovsky Iron & Steel Integrated Works (DMK).
It is structured as a 12-month revolving steel pre-export finance facility and includes an extension option, which would allow the borrower to extend the final maturity date by 12 months upon the agreement of the lenders.
SG CIB acted as sole bookrunner for the syndication and says the loan received strong support from the market with five international banks joining the facility. The facility was oversubscribed and increased from the initially planned US$50mn to US$85mn.