February 4, 2022
Severstal has agreed with Citi to extend the maturity of its
$225mn revolving credit facility for three years, till 2024 (with an option for
further extension till 2026).
The key feature of the transaction in the context of
Severstal’s sustainable development strategy is its ESG component, with
financing terms linked to a number of KPIs that the company has been using over
recent years.
Alexander Shevelev, Severstal’s
CEO commented:
“We have repeatedly stated our commitment to minimizing our
environmental footprint. Integrating sustainability KPIs into our financing
sends a clear signal to our stakeholders that we take those commitments very
seriously and are confident of success. Severstal already has one of the lowest
GHG emission intensities in the industry and we are working to further reduce
emissions by 3% by 2023 and by 10% by 2030/.
Maria Ivanova, President and Management Board Chair, AO
Citibank, said:
“2021 saw significant growth of the ESG financing market in
Russia, and we are excited that Severstal is part of this trend. Citi is
strongly committed to supporting its clients in their efforts to reduce GHG
emissions – supporting decarbonziation globally is at the core of our
sustainability strategy. We congratulate Severstal on closing this important
transaction.”
