OREANDA-NEWS. On 18 May 2009 was announced, that UniCredit Group had received two “Deal of the Year” awards, from Trade Finance magazine and Global Trade Review, for its project financing for the UMMC Group, the second largest vertically integrated copper group in Russia. The EUR 417 million transaction was arranged by UniCredit via HypoVereinsbank (HVB) and the financing is to be used by UMMC to expand its iron production arm. The import share of the project finance was underwritten in full by HVB (85% covered by export credit insurance and 15% by advance payments via UniCredit Bank Moscow). The advantages for the UMMC Group include the low costs for iron production and low charges for natural gas and energy in the region. In addition, there is a competitive advantage for the company through the cost-effective supply of raw material, which is secured through scrap metal deliveries from various companies in the UMMC Group.

This deal stands out from the rest of the market through its tailored collateral structure in particular, which had to take account of legal requirements in several countries. Here the global network of UniCredit Group proved to be one of the key factors in the successful structuring and arrangement of the deal. The transaction, in which the local branch played a significant part, also demonstrated the special position of UniCredit Group in Eastern Europe and allowed the UMMC Group to access the international export finance market for the first time.

“These awards show once again that UniCredit Group and its Global Transaction Banking are superbly positioned to support companies in their cross-border activities. Not least our innovative approach and ability to structure even the most complex transactions make us the first choice bank partner for many companies,” comments Angelo Rizzuti, Head of Structured Trade and Export Finance at UniCredit Group.

Trade Finance and Global Trade Review are the leading trade magazines in the fields of trade and export finance, supply chain and commodity finance for companies, banks and credit insurers worldwide.