Financed ProjectsIndustrial Union of Donbass

Identification Code:

OP/07/0676

Total Operation Cost:

300.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

BSTDB participates in a syndicated term loan facility arranged for and provided to Industrial Union of Donbass (ISD). The proceeds under the syndication will be used by ISD for an investment programme, general corporate needs, including refinancing of existing debt and on-going capital expenditures.

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Materials

Domain:

Private

Borrower/Client:

Industrial Union of Donbass through its Special Purpose Vehicle (Landmond Ltd). Industrial Union of Donbass (Ukraine) ("ISD") is a leading player in the steel industry in Eastern Europe. ISD is a well established Ukrainian steel industrial holding company, which together with its subsidiaries in Ukraine, Hungary and Poland, produces an average of 9 million tones of steel annually.

Co-Financiers/Participants:

CALYON and CREDIT SUISSE INTERNATIONAL (lead arrangers); ABN AMRO BANK, London Branch, Bank of Taiwan London Branch, Barclays Bank PLC, Commerzbank AG, EFG Private Bank (Luxemburg) SA, KBC Bank N.V., Mega International Commercial Bank London Branch, Morgan Stanley Bank International Limited, OTP Bank Plc., Raiffeisen Zentralbank Osterreich Aktiengesellschaft, Societe Generale, VTB Bank (France) SA.

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

It is anticipated that the BSTDB participation in the proposed syndication would have positive development impact, as it will: - support the implementation of company's investment plan, which is expected to have positive impact on company's competitiveness; - indirectly support the local economies in Alchevsk and Dnepropetrovsk, the industrial cities where ISD's production facilities in Ukraine are located, considering that these plants are the main employers in these cities; - in general, help the further development of the company, which has emerged among the leading steel manufacturers in Ukraine and an important exporter.

Environmental Classification and Impact (summary):

The Borrower is implementing a comprehensive Environmental Action Plan (EAP) as part of its capital investment plan, which aims at production modernization and minimisation of the negative environmental impacts. Upon implementation of the EAP the environmental, health and safety performance at the two plants will improve significantly.

Operation Leader:

General Industries, Transport, Tourism 1, General Industries, Transport, Tourism 2

E-mail:

gitt1@bstdb.org,gitt2@bstdb.org