OREANDA-NEWS. On May 18, 2007 the first stage of syndication of the loan facility arranged for System Capital Management (SCM) by BNP Paribas (Suisse) has been successfully completed. Four banks have committed as sub-underwriters to the facility: NATIXIS, Raiffeisen Zentralbank Osterreich AG, Standard Bank and HVB (Bayerische Hypo- und Vereinsbank AG), reported the press-centre of SCM.
SCM and BNP Paribas (Suisse) are planning to launch the second and final stage of the syndication on 21 May.
“We take participation of major international banks in SCM’s debut loan facility as a clear demonstration of their willingness to cooperate with companies of the Group”, said Oleg Popov, the General Director of SCM.
As previously announced on 6 March 2007, SCM signed an agreement with BNP Paribas (Suisse) for the arrangement of a four year USD400 mln. loan facility. Proceeds of the facility will be used for the general corporate investment purposes of the SCM Group. The facility is secured by a pledge on 60%+1 shares of Severny GOK and Centralny GOK, two subsidiaries operating within the Metinvest metals and mining holding company of the SCM.
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JSC System Capital Management (Donetsk) is the largest Ukrainian managing company, which owns and controls assets in the steel, engineering, energy-generating, coal-mining industries, in telecommunications, banking, insurance, media and other sectors of economy.
In particular, the company is a shareholder of Azovstal Iron and Steel Works, Yenakievo Metallurgical Works, Khartsizsk Pipe Works, Avdeyevka by-Product Coke Plant, Central and Northern Mining-Dressing Integrated Works.
90% of JSC SCM shares are owned by the Ukrainian businessman Rinat Akhmetov.