Clifford Chance and Avellum have advised the EBRD on a loan of up to USD 350 million to support the modernization and environmental upgrade of Ukraine's largest steel mill, PubJSC ArcelorMittal Kryvyi Rih. ArcelorMittal was advised by Cleary Gottlieb Steen & Hamilton and the Kyiv office of Kinstellar.
The EBRD loan, which Clifford Chance describes as "the largest private sector investment program in Ukraine in recent years," will be structured as an A-loan of up to USD 200 million provided for the bank’s own account and a B-loan of up to USD 150 million, which will be syndicated to commercial banks. According to Clifford Chance, "the investment will allow ArcelorMittal Kryvyi Rih to upgrade its facilities for sintering – one of the early stages in the process of refining iron ore – and reline one of the plant’s blast furnaces. The investment will also allow the addition of two new continuous casters, along with improvements to the plant’s competitiveness, energy efficiency, and environmental performance.
The project supports the EBRD’s Green Economy Transition approach as it will reduce ArcelorMittal Kryvyi Rih’s CO2 emissions. It will also significantly reduce dust emissions from a current 14,700 tonnes per year to about 3,000 tonnes per year, as well as other specific emissions, including nitrogen oxide."
The Clifford Chance team was supervised and co-ordinated by Warsaw-based Counsel Rafal Zakrzewski, supported by Luxembourg-based Senior Associates Constantin Iscru and Sadan Ramovic.
The Avellum team was led by Partner Glib Bondar, supported by Associates Tetiana Mykhailenko and Orest Franchuk.
The Cleary team included Partner Andrew Shutter, Associates Jessica Man and Simarpreet Panesar, and Trainee Associate Jack Winfield.
The Kyiv-based Kinstellar team consisted of Counsel Andriy Nikiforov and Associate Serhiy Mykhaylyk.
