Tenova Receives Guarantees of €45.4M from BPER and SACE

Tenova, a Techint Group company that operates globally for sustainable, innovative, and reliable solutions in the metallurgical and mining sectors, will build three plants in the Osamaniye industrial area in southern Turkey, thanks to BPER’s risk-sharing of the operation with SACE, which negotiated and guaranteed three letters of credit in favor of the company for a total amount of €45.4 million and with a total term of between 24 and 29 months.

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SACE also issued a supplier credit policy to cover production risk directly in favor of Tenova

More specifically, three letters of credit were issued by the Turkish bank on behalf of Tosyali Toyo Celik Anonim Sirketi under a contract concluded last May. Tenova, thanks to the intervention of BPER and SACE, will thus be able to provide materials, engineering consultancy, and technical supervision in addition to the construction of an electrolytic tinning line, a cold rolling mill, and an annealing furnace with adequate coverage of the financial risks of credit and/or interruption of the order.

Tenova is a major client of BPER Bank’s CIB division very active in trade finance with confirmations of letters of credit and issuance of international guarantees. Founded in 1945 and headquartered in Castellanza (Varese, Italy), Tenova is a worldwide partner for innovative, reliable, and sustainable solutions in the metallurgical sector and, through the Takraf and Delkor brands, also in the mining sector. The company has the experience and expertise of more than 2,000 professionals operating in 19 countries on 5 continents, where they design and develop technologies and services to help companies reduce costs, save energy, limit environmental impact, and improve working conditions for their employees.

In 2021, Tenova had revenues of €578.6 million, Ebitda of €14.5 million, and net cash of €203.1 million

In late October, Tenova signed a contract with U.S. steelmaker JSW Steel USA to ship a grinding machine for the company’s new rolling mill at its Baytown metallurgical plant in Texas, along with related engineering services, with a total value of more than $100 million, a contract that was financed by JSW Steel by drawing on the proceeds of a total maxi-financing of $182 million provided by Intesa Sanpaolo (IMI Corporate & Investment Banking Division) and Banco BPM, of which $70 million was covered by a SACE guarantee and $112 million by a corporate facility for the financing.

Paolo Frascarolo, Tenova’s Head of Finance, said he was very pleased with the collaboration with SACE and BPER, a collaboration that enabled the acquisition of an important contract with a prestigious client, overcoming fierce international competition.

Francesca Di Ottavio, head of Coverage Steel at SACE, concluded, “As SACE we are always at the side of Italian companies like Tenova to help them grow in foreign markets with strategic value for Made in Italy, and in this, the synergy with banking institutions is fundamental, as in this operation with BPER.”

Stefano Bellucci, head of Global Transaction Banking at BPER, added, “BPER Bank is always at the forefront in finalizing transactions that enable companies to develop their international business strategies. Specifically, thanks to SACE’s guarantee, we are supporting Tenova, a leading company in its sector, which is always keen to seek innovative and sustainable solutions, in an important international deal.”

A few weeks ago BPER Banca granted two lines of credit for a total of €20 million, with a 6-year term, to Profilglass, a company specializing in semi-finished aluminum alloy products for industrial use. The loans are aimed at facilitating the achievement of the objectives set out in the 2021-2026 business plan and green projects at the production plant in Fano (PU). Of the total amount disbursed by BPER, €14.5 million was assisted by SACE’s Green Guarantee.

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(Featured image by xusenru via Pixabay)

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First published in Be Beez, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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