Metalloinvest becomes first Russian iron ore & steel company to incorporate sustainability-linked provisions into its pre-export finance facility

Moscow, Russia - 22 December 2020 - Metalloinvest ("the Company"), a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, today announces changes to its credit line for pre-export financing ("PXF-2019/2"), opened with a club of seven international banks at the end of 2019.

The documentation for a syndicated loan in the amount of EUR 200 mn valid until May 2026 was amended to incorporate a mechanism according to which the interest rate is linked to the Company's key performance indicators (KPIs) as part of its environmental strategy priorities.

The following KPIs were defined: development and implementation of a climate action plan aimed at reducing greenhouse gas emissions, reduction of atmospheric air emissions, and increase of the share of technological waste recycled. The achievement of the KPIs will be evaluated based on the results of two milestones in 2022 and 2024, based on the independently verified sustainability report of the Company.

Societe Generale acted as a Sustainability Coordinator for introduction of the sustainability mechanism to the PXF-2019/2 facility.

Alexey Voronov, Deputy CEO - Chief Financial Officer of Metalloinvest, commented:

"We are pleased to announce the transformation of the pre-export finance facility in the amount of EUR 200 mn into a sustainability-linked loan, which was made possible by the implementation of long-term environmental goals. This step shows our commitment to implementing a comprehensive financial strategy for sustainable development. Most notably, this year Metalloinvest received new ESG ratings from leading international agencies, which proves the Company's strong position in the global metals & mining industry. We look forward to implementing a number of new initiatives and continuing to improve our sustainable development practices and policies."

Stephanie Clement de Givry, Global Head of Mining, Metals and Industries, Societe Generale, commented:

"Societe Generale is delighted to support Metalloinvest's commitment to sustainable and responsible production and to have supported the Company as Sustainability Coordinator in its first KPI-related transaction. By committing to link the financial performance of its loan to a set of climate and environmental KPIs, highly relevant for the future of the iron ore and steel industry, Metalloinvest took an important engagement to contribute to a more sustainable economy."

This is the Company's second Sustainability-Linked Loan. In 2019, ING Bank opened a credit line for Metalloinvest in the amount of USD 100 mn (or the equivalent in EUR), where the interest rate is linked to the EcoVadis ESG-rating.

If you have any questions, please contact us:

Artem Lavrischev

Investor Relations

E: ir@metalloinves.com

T: +7 (495) 981-55-55, ext. 7243

Anton Troshin

Public Relations

E: pr@metalloinvest.com  

Tel.: +7 (495) 981-55-55, ext. 7629

Metalloinvest is a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel. The Company has the world's second-largest measured iron ore reserve base and is one of the lowest-cost iron ore producers. Metalloinvest is wholly owned by Holding Company USM LLC. Alisher Usmanov is the major beneficiary of Holding Company USM LLC (49%).