SUEK secures ECA-backed loan
Russia’s largest coal producer Siberian Coal Energy Company (Suek) has secured a six-year ECA-backed US$200mn loan from Citibank and Sumitomo.
Japanese Nippon Export and Investment Insurance (Nexi) is providing insurance on the loan, its first guarantee on a Russian deal.
The loan carries a margin of three-month Libor plus 130 basis points, an improvement from its last deal raised in October last year; a US$1.3bn five-year syndicated pre-export loan facility, which paid 270 basis points over Libor.
The proceeds of Suek’s latest loan will be used to raise funds to refinance grand-scale investment projects, such as developing the bulker terminal at the Vanino port in the Khabarovsk Territory, and enhancing the production capacity of the Tugnui surface mine and coal preparation plant in the Republic of Buryatia, Suek says in a statement.
From January to June this year Suek’s coal exports grew by 12%, compared to the same period last year. The company’s major international consumer markets are China, South Korea, UK, Japan, Taiwan, Germany, Poland, Suek says in a statement.