Planted tree symbolizes first credit with green commitments
Author: Arpád Köteles
Košice, October 26, 2021 - Today a new maple tree was planted on U. S. Steel Košice premises to symbolize the signing of the first credit agreement with green commitments in Slovakia. It has been signed by U. S. Steel Košice steelmaking company together with a consortium of banks coordinated by ING Bank N.V. In contrast to traditional loans, this sustainability-linked credit facility is connected with environmental and social governance commitments including annual emissions reductions.
“Unsecured credit does not require any company property as collateral. On the other hand, we are bound by the conditions of the credit agreement to fulfill certain sustainability targets and parameters in compliance with our corporate strategy,” said Silvia Gaálová, Vice President and Chief Financial Officer during the tree-planting event.
Miroslav Kiraľvarga, Vice President External affairs, Administration and Business Development, Mária Župčanová, General Manager Credit and Banking and Milan Jusko, Director Banking also attended the ceremony. The bank consortium (ING Bank N.V., Slovenská sporiteľňa, a.s., Komerční banka, a.s., UniCredit Bank Czech Republic and Slovakia, a.s., Československá obchodná banka, a.s., Citibank Europe pls.) was represented by ING Bank N.V. delegates, namely Marián Tatar, Country Manager, Martin Borodovčák, Head of Clients and Peter Kover, Relationship Manager Corporate Clients.
On September 29, 2021, U. S. Steel Košice, s.r.o. entered into a EUR 300 million unsecured sustainability-linked revolving credit facility.
This Credit Agreement replaces USSK’s EUR 460,000,000 multicurrency revolving credit facility dated September 26, 2018. The new Credit Agreement will mature five years from the effective date on September 29, 2026. The USSK Credit Agreement also includes an ‘accordion’ feature that allows USSK to request, at any time during the first 12 months of the agreement, an increase the total commitment amount up to an additional EUR 200,000,000.
This new credit facility demonstrates USSK’s commitment in support of our company’s global Sustainability Objectives and Best for AllSM strategy for creating profitable solutions for sustainable steel making.
The costs of drawn and undrawn mounts of this revolving credit facility will increase or decrease based on achievement of three sustainability targets related to:
(1) U. S. Steel’s global carbon intensity;
(2) U. S. Steel’s global safety performance, and
(3) as a stretch objective, USSK will be rewarded if the site receives certification by ResponsibleSteel™ during the lifetime of the credit facility.
This new credit facility’s sustainable metrics further reinforce U. S. Steel’s financial incentives with our sustainability performance commitments.
- THE END -
Ján Bača, Spokesman
Public Affairs Dept.
U. S. Steel Kosice, s.r.o.
+421 55 673 4618
Additional information about U. S. Steel Košice:
U. S. Steel Košice is an integrated metallurgical company that has been producing iron and steel in Slovakia for 20 years. The product portfolio includes products with high added value, which are used in the automotive, packaging, electrical, consumer and construction industries. High quality of products and processes is guaranteed by the quality management system according to ISO 9001, the systems of environmental and energy management and several international certificates.
USSK follows the STEEL principles in its business, which mean that the safety and health of employees, contractors and visitors is in first place, the next priority is trust and respect for employees and all partners, then activities that take into account environmental protection, ethical conduct and doing business in accordance with the law.
USSK is also a leading corporate partner and a responsible community neighbor supporting the development of the region in which its employees and partners live. It has been doing so since its establishment in 2000 through the support of educational and environmental programs, children's and youth activities, health care, sports and sporting events, as well as projects aimed at increasing safety at work and in everyday life. U. S. Steel Košice supports its active employees, values their generosity in corporate collections for charitable purposes and develops their volunteer work for the benefit of the community.
20 years of USSK = investments worth USD 2 billion, of which 694 million for enviro projects
20 years of USSK = zero injury target (achieved in 2019 and 2020 in the area of registered injuries)
20 years USSK = EUR 48 million to support the community