In brief
Finnfund has invested in project company Toplana Zenica d.o.o. Zenica. Steel manufacturer ArcelorMittal Zenica d.o.o. in Bosnia and Herzegovina, city of Zenica, KPA Unicon Oy and Finnfund will form a joint venture project company Toplana Zenica to modernise and upgrade the power generation unit of ArcelorMittal Zenica so that the upgraded unit will be fueled with by-product gases from ArcelorMittal Zenica’s steel manufacturing. Toplana Zenica will sell district heat to the city of Zenica, steam to ArcelorMittal Zenica and electricity to third parties. KPA Unicon is also the major equipment provider.
Main development impact
ArcelorMittal Zenica is one of the most important companies from the perspective of the country’s economy, representing a significant contribution to BIH GDP. Power generation is crucial for the operations of ArcelorMittal Zenica and, therefore, for its societal and economic effects. New power generation will improve ArcelorMittal Zenica’s financial position by increasing the reliability of power generation and by replacing coal with the by-product gases of steel manufacturing. The main air emissions causing bad air quality in Zenica are sulphur and particle emissions. The change in fuels will significantly decrease sulphur and particle emissions from the ArcelorMittal Zenica power operations. New power generation will also reduce greenhouse gases.Investment details
| Name: | ArcelorMittal / Toplana Zenica d.o.o. Zenica |
|---|---|
| Project number: | 80000019 |
| Region: | Europe and Central Asia |
| Country: | Bosnia and Herzegovina |
| Sector: | Energy |
| Signing date (month/year): | October 2018 |
| Currency: | EUR |
| Finnfund's financing (commitment): | 1,800,000 |
| Instrument: | Equity |
| Size of the project financing: | EUR 58,000,000 |
| Share of Finnfund's financing (%): | 3,10 % |
| Status: | Active |
| Website: | Finnfund to finance a power plant to reduce the emissions from a steelworks in Bosnia Herzegovina |
Please note, that in principle, this information is given at the time of signature according to Finnfund's disclosure policy. However, in the case of investment funds, the share of Finnfund’s financing (%) is disclosed after the fund’s final closing, and information on the portfolio companies financed by the fund is updated at least once a year.
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