CLN Coils Lamiere Nastri Spa (CLN), part of ArcelorMittal, has arranged joint financing with two major financial institutions to fund its international growth, Kallanish learns from the company.
Italian lender Cassa Depositi e Prestiti (CDP) and International Finance Corporation (IFC), a member of the World Bank Group, will provide €134 million ($151.7m) in joint financing. €50m of the loan will be provided by CDP and €84m by IFC.
The operation, the first completed within the scope of the Master Cooperation Agreement signed by IFC and CDP, has the objective of supporting CLN’s international growth. The funding will support CLN’s plans to modernise and expand local production of advanced automotive components for car manufacturers. One region to receive particular attention will be South Africa.
“The project will help develop South Africa’s local automotive industry to increase the value addition resulting from greater localisation, introducing new product processes and to upgrade skills to contribute and increase the value chain integration. Furthermore, the loan will support the development of innovative technologies for new-concept vehicles, in particular electric cars,” CLN says in a note.
The resources made available by CDP and IFC will also be invested in a number of other areas. This includes further diversifying CLN’s client portfolio, acquiring new orders in markets and sectors with high potential, and expanding its presence abroad as a strategic supplier for car manufacturers, in a highly competitive sector.