OREANDA-NEWS. February 26, 2010. The Project finance magazine is one of the most authoritative financial editions to follow and evaluate the most perspective and professionally managed deals globally.

Notwithstanding many steel projects were delayed or cancelled, the Sponsors of the Project - OJSC MMK (Russia) and Atakaю Group (Turkey) - committed all necessary resources and efforts to achieve the Project’s goals. It is worth mentioning that the financing was arranged at attractive terms in spite of the recent global downturn in steel industry and difficulties in raising financial resources in the financial markets.

The MMK Atakas financing is a benchmark transaction for the steel industry and shows that there is bank interest for high quality assets despite the troubled financial and commodities market.

The financing package comprises:

  • a EUR 384 million SACE backed export credit facility, arranged by BNP Paribas, SACE and The Royal Bank of Scotland and insured by SACE to finance the main supply contract with Danieli & C. Officine Meccaniche SpA (Italy) along with associated financing costs;
  • a USD 450 million commercial facility arranged by Tьrkiye Garanti Bankasэ A.Ю. (62 %) and Tьrkiye Is Bankasэ A.Ю. (38 %), together with a USD 60 million working capital facility arranged by Tьrkiye Garanti Bankasэ A.Ю. (50 %) and Tьrkiye Is Bankasэ A.Ю. (50 %), for the financing of other capital expenditures and project costs.

About MMK Atakas

MMK Atakas is a Turkish company jointly owned by OJSC MMK and Atakaю Group which was established in 2007 for engineering, constructing and operating of an integrated flat steel making complex with annual production capacity of 2.3 mm tonnes of finished flat steel products located at two sites in Iskenderun and Kocaeli (Gebze).