According to media reports, Spanish Government’s Council of Ministers has authorizes a new aid from the Solvency Support Fund for Strategic Companies. Span’s state owned industrial holding company Sociedad Estatal de Participaciones Industrials has approved a loan to Spanish steel producer Celsa to support its operations affected by the COVID pandemic. SEPI, through its fund created to support strategic businesses, agreed to provide Celsa the requested aid in the amount of EUR 550 million. The funding will be made through granting a participating loan of EUR 280.5 million and an ordinary loan of EUR 269.5 million. Given that the amount of the participating loan is bigger than EUR 250 million, authorization by the European Commission is required. This must be done by 30 June, a deadline for the SEPI COVID-related grants. One of the conditions for the loan approval was the agreement between Celsa and its creditors about the debt restructuring. Local media reports say that the steel company and the creditors, including Goldman Sachs, Deutsche Bank, Cross Ocean and others, agreed to the conditions of the loan, but the debt restructuring agreement is yet to be signed. Celsa’s operations include eleven EAFs in five European countries Spain, France, UK, Norway and Poland with a total capacity of more than 8 million tonnes per year & an installed long steel capacity of more than 9 million tonnes. In addition an aid of 25.03 million euros granted to the Rugui Steel Group will be channeled through a participating loan amounting to 13,525,000 euros and an ordinary loan for a total of 11,500,000 euros. It has a presence in the autonomous communities of Castilla y León, Navarra and the Basque Country. In this sense, the group has a relevant strategic importance in the province of Soria, specifically in the town of Ólvega, where the only steel mill in all of Castilla y León is located and where almost 40% of the company's employment is located. Soria is one of the Spanish provinces most affected by the problem of depopulation. Also, the public support provided to Tubos Reunidos amounts to 112.8 million euros and is articulated through a participating loan with a maturity of seven years. The agreement by which this temporary financial support has been authorized includes the designation of an observer on the Board of Directors of the steel group, who will have a voice, but no vote. Tubos Reunidos has a significant strategic character due to the activity sector in which it operates and its impact on employment and the economy, as it is one of the top ten world producers of martensitic stainless steel pipes for oil and gas and one of the only two European manufacturers of this highly strategic material because it is necessary in gas wells that are exposed to the most demanding working conditions.
According to media reports, Spanish Government’s Council of Ministers has authorizes a new aid from the Solvency Support Fund for Strategic Companies. Span’s state owned industrial holding company Sociedad Estatal de Participaciones Industrials has approved a loan to Spanish steel producer Celsa to support its operations affected by the COVID pandemic. SEPI, through its fund created to support strategic businesses, agreed to provide Celsa the requested aid in the amount of EUR 550 million. The funding will be made through granting a participating loan of EUR 280.5 million and an ordinary loan of EUR 269.5 million. Given that the amount of the participating loan is bigger than EUR 250 million, authorization by the European Commission is required. This must be done by 30 June, a deadline for the SEPI COVID-related grants. One of the conditions for the loan approval was the agreement between Celsa and its creditors about the debt restructuring. Local media reports say that the steel company and the creditors, including Goldman Sachs, Deutsche Bank, Cross Ocean and others, agreed to the conditions of the loan, but the debt restructuring agreement is yet to be signed. Celsa’s operations include eleven EAFs in five European countries Spain, France, UK, Norway and Poland with a total capacity of more than 8 million tonnes per year & an installed long steel capacity of more than 9 million tonnes. In addition an aid of 25.03 million euros granted to the Rugui Steel Group will be channeled through a participating loan amounting to 13,525,000 euros and an ordinary loan for a total of 11,500,000 euros. It has a presence in the autonomous communities of Castilla y León, Navarra and the Basque Country. In this sense, the group has a relevant strategic importance in the province of Soria, specifically in the town of Ólvega, where the only steel mill in all of Castilla y León is located and where almost 40% of the company's employment is located. Soria is one of the Spanish provinces most affected by the problem of depopulation. Also, the public support provided to Tubos Reunidos amounts to 112.8 million euros and is articulated through a participating loan with a maturity of seven years. The agreement by which this temporary financial support has been authorized includes the designation of an observer on the Board of Directors of the steel group, who will have a voice, but no vote. Tubos Reunidos has a significant strategic character due to the activity sector in which it operates and its impact on employment and the economy, as it is one of the top ten world producers of martensitic stainless steel pipes for oil and gas and one of the only two European manufacturers of this highly strategic material because it is necessary in gas wells that are exposed to the most demanding working conditions.
