The European Bank for Reconstruction and Development (EBRD) has signed an agreement on providing a $350 million syndicated loan to Ukraine's largest steel mill, PubJSC ArcelorMittal Kryvyi Rih.

"The EBRD has signed the biggest project in Ukraine this year," EBRD Senior Adviser Anton Usov wrote on Facebook on December 22.

The loan is designed to support the mill's modernization and environmental upgrade, the Facebook post said.

"It is the largest private sector investment program in Ukraine in recent years," it said.

The EBRD loan will be structured as an A-loan of up to $200 million provided for the Bank's own account and a B-loan of up to $150 million, which will be syndicated to commercial banks.

The investment will allow ArcelorMittal Kryvyi Rih to upgrade its facilities for sintering – one of the early stages in the process of refining iron ore – and reline one of the plant's blast furnaces.

The investment will also allow the addition of two new continuous casters, along with improvements to the plant's competitiveness, energy efficiency and environmental performance.

The project supports the EBRD's Green Economy Transition approach as it will reduce ArcelorMittal Kryvyi Rih's CO2 emissions. It will also significantly reduce dust emissions from a current 14,700 tonnes per year to about 3,000 tonnes per year, as well as other specific emissions, including nitrogen oxide.

"This financing is a very good example of the benefits that can be derived from foreign direct investment. This particular investment brings to Ukraine the highest standards in corporate governance as well as advanced environmental practices and technologies," Francis Malige, the Managing Director for Eastern Europe and the Caucasus for the EBRD, was quoted as saying.

CEO of PubJSC ArcelorMittal Kryvyi Rih Paramjit Kahlon, in turn, said: "This project proves our commitment at ArcelorMittal Kryvyi Rih to significantly reduce our environmental footprint. We are grateful for the EBRD's support and guidance in helping us to make this important considerable investment in us and the region."

The loan to ArcelorMittal Kryvyi Rih is helping to finance investments worth US $1.1 billion at the mill, which is owned by global steel maker ArcelorMittal.

PJSC ArcelorMittal Kryvyi Rih is the largest rolled steel products manufacturer in Ukraine specializing in manufacturing long products, including reinforcing steel bars and wire rods. The production facilities of the full-cycle enterprise enable to manufacture over 6 million tonnes of rolled products, about 7 million tonnes of steel and over 7.8 million tonnes of hot metal.

The main sales markets for metal products are situated in the Middle East, Europe, Africa, Algeria, the EU and Eastern Europe.

Mittal Steel Corporation bought 93.02% shares of OJSC Kryvorizhstal at an open tender on October 24, 2005, for UAH 24.2 billion with the starting price set at UAH 10 billion.

On June 14, 2007, the stockholders' meeting decided to replace the name of Mittal Steel Kryvyi Rih with PJSC ArcelorMittal Kryvyi Rih.