Metalloinvest Finance Designated Activity Company (IRSH)
Metalloinvest announces the opening of sustainable finance credit line
Moscow, Russia - 16 April 2019 - Metalloinvest ("the Company"), a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, today announces the signing of a loan agreement with ING Bank in the amount of up to USD 100 mn (or EUR equivalent) until 30 November 2020.
The terms of the agreement state that the interest rate of the 'Sustainability Improvement Loan' depends on the level of the Company's Corporate Social Responsibility (CSR) rating and may be reduced if Metalloinvest's rating indicators improve.
Alexey Voronov, Finance Director of Management Company Metalloinvest, commented:
"Sustainable development (ESG) is an integral part of Metalloinvest's strategy and is essential to the Company's long-term competitiveness. In 2018, Metalloinvest received a debut CSR rating of 'Silver' medal from EcoVadis, the international independent rating agency.
Today, we are pleased to announce the opening of a sustainable finance credit line, which is an example of the Company's continued commitment to sustainable development. In cooperation with ING Bank, Metalloinvest has become one of the first companies in Russia to sign an agreement of green finance nature. This credit line stimulates the improvement of the Company's ESG performance and provides an additional source of liquidity."
Mikhail Chaikin, CEO of ING Bank in Russia, commented:
"We are delighted to complete the first EcoVadis-linked loan in Russia with Metalloinvest. The Company has put sustainability very high on its strategic agenda and set an ambition that reflects ING own vision and aspiration. ING is consistently deploying its international expertise in sustainable finance to the local market. We are really pleased with an opportunity to offer this innovative solution and further develop our long-term and constructive relationship with Metalloinvest".
Notes to editors:
EcoVadis is an independent rating agency specialised in sustainability performance ratings used in commercial relationships including supply chain, banking and finance. The EcoVadis methodology is based on international sustainability and CSR standards including the Global Reporting Initiative, the UN Global Compact and ISO 26000, applicable to 198 categories in 155 countries. EcoVadis evaluates companies on 21 criteria in four themes: environment, labor and human rights, ethics and sustainable procurement.
In November 2018, Metalloinvest received its debut CSR rating from EcoVadis. Following the assessment, the Company was awarded the 'Silver' level of recognition for its CSR practices. Metalloinvest was placed in the top 11% of producers rated by EcoVadis globally in the basic iron and steel manufacturing industry (over 900 companies) and in the top 7% of iron ore and steel producers rated by EcoVadis globally for environmental work.
In 2018, the Company's investments to minimise the impact of production on the environment and the costs of environmental protection measures amounted to RUB 7.2 bn.
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Contacts for investors:
T: +7 (495) 981-55-55 (ext. 7243)
Contacts for media:
T: +7 (495) 981-55-55 (ext. 7629)
Metalloinvest is a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel.
Metalloinvest is wholly owned by Holding Company USM LLC. Alisher Usmanov is the major beneficiary of Holding Company USM LLC (49%), with other major beneficiaries being the companies of Vladimir Skoch (30%) and Farhad Moshiri (8%).
 ESG - environmental, social and governance.
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