ArcelorMittal amends US$5.5bn Revolving Credit Facility to align with its sustainability and climate action strategy
April 30 2021 - 11:15AM
30 April,
2021,
17:15 CET
ArcelorMittal (‘the Company’) today announces that it has agreed
with the lenders of its US$5.5 billion Revolving Credit Facility
(the ‘RCF’) an amendment that will link the calculation of loan
margins to key indicators of its performance in meeting its
sustainability and emissions reduction goals. The successful
transaction reflects ArcelorMittal’s target of reducing its carbon
intensity, and its belief that steel is the material of choice for
the transition towards a low-carbon, circular economy.
Under the amended RCF – the largest ESG linked facility of its
kind in the metals and mining sector - the margin payable will be
increased or decreased depending on ArcelorMittal’s performance
against certain metrics related to its environmental and
sustainability performance. The metrics measured include the CO2
intensity of ArcelorMittal’s European operations and the number of
ArcelorMittal facilities globally which have been certified by
ResponsibleSteel™ by the end of each year.
ArcelorMittal has set a group-wide target of reaching carbon
neutrality by 2050, and a 30 per cent CO2 reduction target for its
European operations by 2030. The Company has identified two
breakthrough carbon-neutral technology routes, Smart Carbon and
Innovative DRI. Its two flagship Smart Carbon initiatives,
Carbalyst® (a carbon capture and reuse project) and Torero
(converts waste wood into bio-coal which is used as a replacement
for coal in the blast furnace) will both come on stream at the
Company’s plant in Ghent, Belgium, next year, while in Hamburg,
Germany it is developing an industrial-scale project to use
hydrogen instead of natural gas in the direct reduction of iron
ore.
The Company is a founding member of ResponsibleSteel™, the steel
industry’s only global multi-stakeholder certification initiative.
Its certification covers over 200 requirements addressing a range
of environmental, social and governance standards. Several of the
Company’s European Flat Products sites are currently undertaking
the ResponsibleSteel™ site-level certification process.
In addition, it has been agreed that the leverage ratio
financial covenant currently contained in the RCF will fall away in
the event that ArcelorMittal obtains an investment grade long-term
credit rating (with a stable outlook) from two rating agencies.
The RCF was signed on 18 December 2018 and remains undrawn and
available for the Group’s general corporate purposes. Crédit
Agricole Corporate and Investment Bank acted as ESG
coordinator.
ENDS
About ArcelorMittal
ArcelorMittal is the world's leading steel and
mining company, with a presence in 60 countries and primary
steelmaking facilities in 17 countries. In 2020, ArcelorMittal had
revenues of $53.3 billion and crude steel production of 71.5
million metric tonnes, while iron ore production reached 58.0
million metric tonnes.
Our goal is to help build a better world with
smarter steels. Steels made using innovative processes which use
less energy, emit significantly less carbon and reduce costs.
Steels that are cleaner, stronger and reusable. Steels for electric
vehicles and renewable energy infrastructure that will support
societies as they transform through this century. With steel at our
core, our inventive people and an entrepreneurial culture at heart,
we will support the world in making that change. This is what we
believe it takes to be the steel company of the future.
ArcelorMittal is listed on the stock exchanges
of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and
on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and
Valencia (MTS).
For more information about ArcelorMittal please
visit: http://corporate.arcelormittal.com/
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Contact
information ArcelorMittal Investor Relations |
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General |
+44 20 7543
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+44 20 3214
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Bonds/CreditE-mail |
+33 171 921
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Contact
information ArcelorMittal Corporate Communications |
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Paul
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