Sberbank of Russia

09/09/2021 | Press release | Distributed by Public on 09/09/2021 01:34

Sber opens letter of credit nearing EUR 250 mn for Mikhailovsky GBZh

Sber has signed a master agreement on letters of credit with OOO Mikhailovsky GBZh, which was established by USM Group and Metalloinvest's Mikhailovsky GOK as part of the project to construct a hot briquetted iron (HBI) facility in Kursk Region, Russia.

The agreement is capped at RUB 280 mn and matures in 2025. The bank's first letters of credit intended to be invested in the construction of the HBI facility in Kursk Region, Russia, exceeded EUR 246 mn.

We are pleased to continue our cooperation with USM Group and Metalloinvest. This agreement and the opening of letters of credit for EUR 246 mn is the first result of our agreements regarding the financial support of the project by the bank. The solutions Sberbank offered for structuring secure international settlements using letters of credit are increasingly popular and especially relevant in such a large investment project since they allow the company to optimize financial resources and ensure comfortable terms for equipment supplies. Furthermore, as a bank that pays special attention to ESG principles, we find it crucial that this project widely uses green technology that ensures high ESG standards for future production.

Anatoly Popov

Deputy Chairman of the Executive Board, Sberbank

For us, this is a vital step toward the development of the cooperation agreement we had signed with Sber. Import letters of credit Sber opened guarantee stable long-term settlements with foreign suppliers, facilitate the timely delivery of equipment and allow the project to be implemented ahead of schedule.


DeputyCEO, USM

The use of modern technology in the eco-frienddly metals industry will reduce energy consumption and the impact of the plant on the environment. The facility is scheduled to be launched in the first half of 2024, and its design capacity will exceed 2 million metric tons a year. The plant is estimated to receive RUB 40 bn in investment for construction purposes.