OREANDA-NEWS. System Capital Management (SCM) has mandated BNP Paribas to arrange a USD 400 million Term Loan Facility with a 4 year duration.. Proceeds of the facility will be used for achieving SCM Group’s corporate objectives including financing of its further expansion.

“SCM Group expects to invest over $5 billion in development of its business within the next 5 years. We will obviously invest in expansion of our traditional business sectors, i.e. mining and metal as well as energy generation and distribution. But we also have large-scale plans to develop our new business fields – telecommunications, finance, and media. Besides we are also interested in investing in real estate”, said SCM’s CEO, Oleg Popov. “We intend to invest our own funds and facilities borrowed on international capital markets to ensure such significant investment plans. The businesses of SCM Group have a strong credit history but SCM Company is entering western capital markets for the first time”.

Under the loan agreement, the borrowed funds will be provided to the company during the first half of 2007. The facility is secured by a pledge on 60%+1 shares of Severny GOK and Central GOK operating under the Metinvest umbrella (the mining and metal holding of SCM Group).

The syndication is scheduled to be launched before the end of March.

SCM is the largest Ukrainian private company, whether measured in terms of net worth or revenues. SCM’s diversified business activities comprise of metals & mining (iron ore, coking coal, steel and pipes); energy generation & distribution; finance; telecommunications; real estate; and other business areas. SCM employs approximately 160,000 people. ZAO SCM is a managing company of the Group. Rinat Akhmetov owns 90% of ZAO SCM.

BNP Paribas is a European leader in banking and financial services, and ranks among the world's top 15 banks by market capitalization and total assets. It has more than 140,000 employees, 110,000 of whom are based in Europe. The group occupies leading positions in three significant fields of activity: Corporate and Investment Banking, Asset Management & Services and Retail Banking.

It is present in 85 countries and has a strong presence in all the key financial centres. Present throughout Europe, in all its business lines, France and Italy are its two domestic markets in retail banking. BNP Paribas enjoys a significant and growing presence in the United States and leading positions in Asia and in emerging markets.