UPDATE 1-Illimity structures 425 mln euro financing for clean up of Italian refinery

(Recasts to focus on refinery clean up, deal structure)

MILAN, July 31 (Reuters) - Illimity Bank said on Wednesday it had structured a financing deal worth more than 400 million euros ($434 million) for Italian refinery ISAB, which plans to reduce the environmental impact of its activities under a 1.4 bln euro investment plan.

As part of the transaction organised by illimity Bank, the refinery will receive 350 million euros.

It will also get 75 million euros through a subordinated loan involving some of its shareholders, including Trafigura, illimity said.

The funding will support the first phase of the refinery's 2024-2033 investment plan aimed at strengthening its core business, reducing its environmental impact and developing additional green initiatives, the lender said.

ISAB - which Russia's Lukoil sold to Cypriot private equity fund Green Oil Energy last year - refines 320,000 barrels per day of crude, accounting for a fifth of Italy's refining capacity.

It directly employs about 1,000 people in the economically depressed southernmost region of Italy.

($1 = 0.9220 euros) (Reporting by Francesca Landini Editing by Mark Potter, Kirsten Donovan)