AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 30 September 2015,according to media reports, the UK Export Finance agency provided the international steel mills group Evraz with a loan worth 45 million GBP (ca. 69.4 million USD) to contract Primetals in order to invest in a steel facility in Canada. Primetals is a joint venture of the Siemens and Mitsubishi Heavy Industries corporations, with design and engineering offices in Sheffield.
The loan was granted upon the usual condition of the UKEF that at least 25% of the loan would be committed to creating jobs in the Sheffield offices. It will be repayable in 8 and half years and will be given at the lowest export financing-rate in OECD countries of 2.63%.
The new head of the direct-lending facility at UKEF was quoted in the media saying the deal posed "commercial risks" as it was leant to a non-investment grade entity but "appropriate checks" had been conducted.
This loan is part of the Direct Lending facility announced in the 2014 budget (cf. Related Measures).
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