SUCCESSFULLY COMPLETED LONG TERM FINANCING

Joint press release of the SIJ group and the NLB.

SUCCESSFULLY COMPLETED LONG-TERM FINANCING OF THE SIJ GROUP IS ALSO A CONFIRMATION OF THE INVESTORS’ CONFIDENCE

Ljubljana, 14 February 2022 - A syndicate of nine foreign and domestic banks led by Nova Ljubljanska banka d.d., Ljubljana (NLB) as the arranger and agent signed a new seven-year syndicated contract worth 230 million euros with two largest companies of the SIJ Group SIJ Acroni and SIJ Metal Ravne.

The syndicate of nine foreign and domestic banks led by Nova Ljubljanska banka d.d., Ljubljana (NLB) as the arranger and agent signed a new seven-year syndicated loan contract worth 230 million euros with two largest companies of the SIJ Group SIJ Acroni and SIJ Metal Ravne in order to refinance the existing portfolio of loans, obtain new liquidity reserves for the long-term development of the SIJ Group and finance the investments aimed at improving environmental efficiency. In line with the SIJ’s strategy until 2025, the SIJ Group’s investment projects are focused on increasing the efficiency of production and sustainable development, particularly environmental projects, operating in accordance with the principles of circular economy and energy efficiency.

In addition to NLB d.d. as the arranger and agent, Nova Kreditna banka Maribor d.d., SID – Slovenska izvozna in razvojna banka, d.d, Ljubljana, SKB banka d.d. Ljubljana, Erste Group Bank AG, Banka Sparkasse d.d., Banka Intesa Sanpaolo d.d., UniCredit Banka Slovenija d.d. and European Bank for Reconstruction and Development (EBRD) also participated in the syndicate, which is an important indicator of the banks’ trust in the operations and orientation of the SIJ Group towards a sustainable economic growth. The EBRD’s participation in the loan is EUR 25 million for the support of the SIJ Group’s projects that will additionally reduce its impact on the environment.

Igor Malevanov, Vice President and CFO of the SIJ Group said: “We appreciate the confidence of the bank syndicate in the business model of the SIJ Group and we are grateful for the support to our development orientation towards efficient and sustainable operations. Together with the issues bonds and commercial bills, the new loan will ensure long-term financing and stability for both companies and the entire SIJ Group, which is essential for our growth and development in accordance with the strategy until 2025.”

The SIJ Group is among the most active and most visible groups of companies on the domestic banking and capital market and enjoys the investors’ great trust.

Andrej Lasič, Assistant to the Management Board of the NLB for Corporate and Investment Banking, underlines: “For years, the NLB has been organising different methods of financing the SIJ Group depending on its needs and capacity as well as the situation on the capital markets. Following the successful organisation of additional bond issue of the company SIJ d.d. worth 13 million euros and commercial papers worth 30 million euros last December (more than 136 million euros in total during the pandemic), the NLB again confirmed by organising this loan that it remains the primary long-term partner bank of the SIJ Group - one of the most important European business groups in steel industry with leading market shares in the European Union and focusing on niche steel markets.”