Metinvest signs new securitization deal for Italian plants

The agreement is aimed at financing a portfolio of receivables in the amount of up to €50 million

Metinvest B.V., the parent company of a vertically integrated group of steel and mining companies, has announced the successful launch of a new receivables securitization transaction for Metinvest Trametal and Ferriera Valsider, its Italian rolling mills. This is stated in Metinvest’s press release.

The agreement is aimed at financing a portfolio of receivables worth up to €50 million. The program is designed for a maximum term of five years with a one-year renewal option and will support sales in the EU and improve the working capital position of the Group’s Italian rolling mills.

Banca Akros S.p.A. (Gruppo Banco BPM) structured the transaction by establishing a special purpose vehicle in accordance with Italian law (130/99). It involves the issuance of partially paid variable rate bonds secured by the trade receivables portfolio of Metinvest Trametal and Ferriera Valseider. Banco BPM S.p.A., through Banca Akros S.p.A., will act as an investor in the transaction.

«We appreciate this new chapter in our cooperation as we renew business relations with our long-standing partners, Banco BPM S.p.A. and Banca Akros S.p.A. This landmark transaction is part of Metinvest’s strategy to diversify and strengthen its trade finance portfolio,» commented Yuriy Ryzhenkov, CEO of Metinvest Group.

As GMK Center reported earlier, Metinvest reduced steel production by 5% quarter-on-quarter – to 469 thousand tons in Q1 2024. Pig iron production decreased by 5% q/q – to 403 thousand tons, while iron ore production increased by 36.6% q/q – to 4.86 million tons. Output of steel products (semi-finished and finished products) increased by 2% q/q – to 750 thousand tons.