Deutsche Bank leads oversubscribed USD 700m pre-export facility for Metinvest

London, Deutsche Bank has successfully closed a USD 700m pre-export facility for Metinvest, the largest loan facility secured by a Ukrainian private sector corporate since 2007.

Against a challenging market backdrop, the transaction was oversubscribed and enabled Metinvest to increase the facility from USD 300m to USD 700m. The proceeds will be used to further modernise Metinvest’s assets along with other corporate purposes.

Deutsche Bank’s role in this landmark transaction in Ukraine underlines its market-leading structuring and placement capabilities in structured trade finance loans for commodity producers across the CIS region.

Deutsche Bank was Coordinating Mandated Lead Arranger, Facility Agent, Security Trustee and Sole Bookrunner, closing the deal with a syndicate of 14 banks, including: Open Joint-Stock Company “Alfa-Bank”, BNP Paribas (Suisse) SA, Deutsche Bank AG, Gazprombank (Open Joint-Stock Company), ING Bank N.V., Natixis, Sberbank and WestLB AG as Mandated Lead Arrangers; VTB Western Europe Subgroup (VTB Bank (Austria) AG, VTB Bank (Deutschland) AG, VTB Bank (France) SA) as Arrangers; and Credit Suisse, Erste Group Bank AG and Raiffeisen Zentralbank Österreich Aktiengesellschaft as Senior Lead Managers.

Kris Van Broekhoven, Head of Structured Commodity Trade Finance for EMEA at Deutsche Bank, said: “Despite turbulence in global financial markets, commitments exceeded the initially announced loan amount by almost 300%. This is clear recognition of Metinvest’s sound performance throughout the economic downturn, despite strong volatility in the steel market, made possible by the company’s highly vertically integrated business model.”

Boris Jaquet, Director in Trade Finance Distribution at Deutsche Bank, said: “The facility’s significant oversubscription and the record number of lenders joining the transaction is another clear testimony that - even in challenging market conditions - bank liquidity is still widely available for top-notch borrowers and sound financing structures. DB is very proud to have sole led the syndication effort for Metinvest and the success of this landmark transaction is another proof of DB’s unrivalled debt placement capabilities.”

Metinvest is an international vertically integrated mining and steel group of companies. Production facilities of Metinvest produce enough steelmaking raw materials to meet its own demand and to be the key supplier to major steelmaking companies in Ukraine, Europe and Asia. The major shareholders of Metinvest are SCM Group (75% ownership) and Smart-Holding (25% ownership), partnering in Company’s management.

About Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 81,929 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.

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