The European Bank for Reconstruction and Development (EBRD) is to provide a loan of up to 350 million US dollars to support the modernisation and environmental upgrade of Ukraine’s largest steel mill, PubJSC ArcelorMittal Kryvyi Rih.
The loan will help finance ongoing investments at the mill, which is owned by global steel maker ArcelorMittal and represents the largest private sector investment programme in Ukraine in recent years.
“We are very happy to be investing with our long-term partner, ArcelorMittal, said Francis Malige, EBRD Managing Director for Eastern Europe and the Caucasus. “This financing is a very good example of the benefits that can be derived from foreign direct investment. This particular investment brings to Ukraine the highest standards in corporate governance as well as advanced environmental practices and technologies.”
Paramjit Kahlon, Director General Arcelor, Mittal Kryvyi Rih, said: “this project proves our commitment at ArcelorMittal Kryvyi Rih to significantly reduce our environmental footprint. We are grateful for the EBRD’s support and guidance in helping us to make this important considerable investment in us and the region.”
The EBRD loan will be structured as an A-loan of up to 200 million US dollars provided for the bank’s own account and a B-loan of up to 150 million US dollars, which will be syndicated to commercial banks.
The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost 11.6 billion euros through 383 projects since the start of its operations in the country in 1993.
Mr Malige has also however called on the Ukraine to prevent the country from backsliding on corruption. “Reform in Ukraine is being rolled back, it would seem… But while the pushbacks are real, they also show that reforms are biting…Achieving reform in these times requires an approach that tightly coordinates the positions of the international community around shared objectives,” he wrote in an article in the Financial Times newspaper.