The European Bank for Reconstruction and Development (EBRD) could arrange a long-term loan for ArcelorMittal Group in the amount of up to 350 million euro to finance capital investments in ArcelorMittal Kryvyi Rih.

According to a bank report on its website, the EBRD board of directors plans to consider this issue on Oct. 4 this year.

“The proposed facility will support part of a $1.1 billion investment program by ArcelorMittal at its Ukrainian subsidiary ArcelorMittal Kryvyi Rih. The proceeds from the EBRD loan will be allocated towards capex focusing on improvement of competitiveness, energy efficiency and environmental performance,” reads a report on the EBRD website.

The EBRD specifies the borrower is ArcelorMittal S.A. holding company (Luxembourg), the world’s largest integrated mining and metallurgical company with revenues of $57 billion in 2016, which will then lend to PJSC ArcelorMittal Kryvyi Rih, in which it owns 95.13 percent of the shares.

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According to the document, the borrower will receive a senior unsecured loan to in the amount of approximately 350 million euro, of which 200 million euro will be provided by the EBRD and up to 150 million euro will be syndicated to commercial lenders or risk participated through unfunded risk participations.

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