Mining and metals group Metinvest is looking for a new investor to finance a 3 billion euro ($3.4 billion) steel plant in Italy as the Ukrainian group tries to reduce its obligations, Bloomberg reports.
The agency says it is looking to find an additional partner for the project in Tuscany. The company wants to strengthen financing "given the risks associated with the war, given the significant operational presence of Metinvest in Ukraine."
However, as noted, some potential lenders have become more cautious as a result of increased geopolitical risks, in particular the recent conflict in the Middle East
Imagination, and we continue dialogue with financial institutions to also complete work in this direction, the agency was told in Metinvest.
It is recalled that the Italian government defined this initiative as a “national strategic project”, and Metinvest Adria is a joint venture about the project “reviving steel in Italy”. It is expected to produce 2.7 million tons of low-carbon steel per year and will create 1,100 jobs in the region.
Under the original plan, financing was to consist of debt, government grants and equity contributions from the JV partners. Metinvest agreed to contribute over 500 million euros, or 75% of the total equity capital, but is now seeking to reduce this amount to less than 300 million euros. berth in the port of Piombino.
"Metinvest's financial position worsened after the company had to use cash reserves in April to repay bonds worth $428 million. Part of the company's assets in Ukraine were lost or damaged as a result of Russian invasion forces," the material says.
In addition, it is noted that this month S&P Global Ratings raised its credit rating Metinvest, after repaying the bonds, however, maintained a “negative” outlook for the business, noting the need to create a cash reserve. According to S&P, by the beginning of May, Metinvest's free cash flow amounted to $150 million.
Metinvest is considering the possibility of raising long-term financing and recently held meetings with investors to discuss the price and structure of a potential bond issue. Like most Ukrainian companies, Metinvest has not entered the bond market since the full-scale invasion began in 2022. Despite this, the group managed to meet its financial obligations and reduce its debt burden, Bloomberg said in a report. Its enterprises are located in Ukraine - in the Donetsk, Lugansk, Zaporozhye and Dnepropetrovsk regions, as well as in the countries of the European Union, Great Britain and the USA. The main shareholders of the holding are the SCM group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest group.
Mining and metallurgical group Metinvest is looking for a new investor to finance a steel plant worth 3 billion euros ($3.4 billion) in Italy, as the Ukrainian group tries to reduce its obligations, reports Bloomberg.
According to the agency, it is about finding additionalpartner for a project on site in Tuscany. The company wants to strengthen financing "given the risks associated with the war, given the significant operational presence of Metinvest in Ukraine."
However, as noted, some potential lenders have become more cautious as a result of increased geopolitical risks, in particular the recent conflict in the Middle East
Imagination, and we continue dialogue with financial institutions to also complete work in this direction, the agency was told in Metinvest.
It is recalled that the Italian government defined this initiative as a “national strategic project”, and Metinvest Adria is a joint venture about the project “reviving steel in Italy”. It is expected to produce 2.7 million tons of low-carbon steel per year and create 1,100 jobs in the region.
Under the original plan, financing was to consist of debt, government grants and equity contributions from the JV partners. Metinvest agreed to contribute over 500 million euros, or 75% of the totalown capital, but is now seeking to reduce this amount to less than 300 million euros. berth in the port of Piombino.
"Metinvest's financial position worsened after the company had to use cash reserves in April to repay bonds worth $428 million. Part of the company's assets in Ukraine were lost or damaged as a result of Russian invasion forces," the material says.
In addition, it is noted that this month S&P Global Ratings raised its credit rating Metinvest, after repaying the bonds, however, maintained a “negative” outlook for the business, noting the need to create a cash reserve. According to S&P, by early May, Metinvest's free cash flow amounted to $150 million.
Metinvest is considering raising long-term financing and recently met with investors to discuss the price and structure of a potential bond issue. Like most Ukrainian companies, Metinvest did not enter the bond market after the start of a full-scale invasion in 2022 years old. Despite this, the group managed to meet its financial obligations and reduce its debt burden, Bloomberg said in a report. Its enterprises are located in Ukraine - in the Donetsk, Lugansk, Zaporozhye and Dnepropetrovsk regions, as well as in the countries of the European Union, Great Britain and the USA. The main shareholders of the holding are the SCM group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest group.
