Financed ProjectsMETINVEST

Identification Code:

OP/19/0011

Total Operation Cost:

0

Maturity:

84 months

Operation Status:

Description and Purpose of the Operation:

The proceeds of the Loan will be used to finance the purchases of equipment and machinery for the modernization of the Metinvest Group’s assets in Ukraine.

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Materials

Domain:

Private

Borrower/Client:

Metinvest Group, Ukraine

Co-Financiers/Participants:

n.a

Guarantors/Sponsors:

n.a.

Developmental and Regional Cooperation Impact:

The Operation is consistent with the sectoral and operational priorities for Ukraine: • It is highly likely to meet the mandate of BSTDB stated in the Medium-Term Strategy and Business Plan (MTSBP), namely development of the country and increased integration among the member countries. Given the importance of the sector to Ukraine and its export potential, an increased and efficient production will likely have developmental impact in Ukraine. Certain share of Group’s exports goes the other member countries. • The Operation meets requirements of the Ukraine Country Strategy, which states that the Bank will try to pay "special attention to activities that promote regional cooperation, development of infrastructure, increased and diversified export of goods and services, and new employment creation." Additionally, the strategy mentions the importance of working "with medium- and large-scale export-oriented Ukrainian companies" and that "primary objective in the manufacturing sector will be support of local companies in their efforts to improve efficiency of operations and modernize their technological base".

Environmental Classification and Impact (summary):

Environmental and Social (E&S) category B. The E&S due diligence concludes that despite the sector of the operation - mining and integrated steelworks which are complex processes and involve high material and energy flows, the E&S issues associated with financing purchasing of machinery and some working capital are limited and not likely to be significant. The general E&S performance of Metinvest has been assessed as positive, with the necessary management systems in place, increasing yearly E&S expenditures, and continuous E&S improvements at the production sites and local communities.

Operation Leader:

General Industries, Transport, Tourism 1

E-mail:

gitt1@bstdb.org