Metinvest B.V., the parent company of a vertically integrated group of steel and mining companies (jointly referred to as “Metinvest” or “the Group”), has released its audited IFRS consolidated financial statements for the 12 months ended 31 December 2019

Operational highlights 

  • Completed major CAPEX projects, including Azovstal’s major overhaul of blast furnace (BF) no. 3 with the simultaneous installation of the pulverised coal injection (PCI) unit, as well as Ilyich Steel’s reconstruction of the hot strip mill (HSM) 1700.
  • Acquired stakes in two Ukrainian metallurgical coke producers, including a 23.71% stake in Southern Coke and a 49.37% interest in Dnipro Coke.


ESG highlights

  • As of 2019, Metinvest received an MSCI ESG Rating of ‘B’ *. MSCI ESG Research provides MSCI ESG Ratings on global public and a few private companies on a scale ranging from ‘AAA’ (“leader”) to ‘CCC’ (“laggard”), according to exposure to industry-specific ESG risks and the ability to manage those risks relative to peers.
  • Set a new record for the Group during the period in terms of environmental CAPEX investments, which exceeded US$155 mn.

Debt management highlights

  • In September, Fitch and S&P upgraded Metinvest’s credit ratings to ‘BB-’ and ‘B’, respectively, both with a ‘stable’ outlook. Currently, Fitch’s rating is two notches above Ukraine’s sovereign level and S&P’s is in line with it. In November, Moody’s charged its outlook on Metinvest’s corporate family rating to ‘positive’, affirming its ‘B3’ rating, which is capped by Ukraine’s long-term foreign currency bond ceiling.
  • Completed a successful debut dual-currency eurobond offering, issuing a US$500 mn 10-year tranche at 7.75% per annum and a EUR300 mn long 5-year tranche at 5.625% per annum. This effectively extended the maturity of US$440 mn of eurobonds due in 2023 by 6.5 years and reduced refinancing risks. The net proceeds from the deal amounted to some US$350 mn.
  • Repaid ahead of schedule US$75 mn of its pre-export finance (PXF) facility, following which the remainder due under the facility is US$406 mn.
  • Fully settled the remaining balance for the acquisition of the 24.77% stake in the Pokrovske coal business.
  • Secured a nine-year buyer credit facility of EUR34.4 mn for the HSM 1700 reconstruction at Ilyich Steel. The facility is covered by an Austrian export credit agency (ECA) guarantee issued by Oesterreichische Kontrollbank Aktiengesellschaft (OeKB), while ODDO BHF Aktiengesellschaft acted as the sole lender.
  • Attracted, after the reporting period, a buyer credit facility of EUR24.4 mn for up to 11 years for the construction of an air separation unit and vaporisation station at Ilyich Steel. The facility is covered by a French ECA guarantee issued by Bpifrance Assurance Export, while Raiffeisen Bank International acted as the sole lender.