Mechel wins Sberbank loans
Russian mining and metals company Mechel has arranged four long-term credit lines totalling R24bn (US$7.9bn) for one of its divisions Southern Kuzbass Coal Company.
Sberbank will provide the loan, which has a tenor of five years with a three-year grace period. For two of these credit lines, funds are provided in the form of a bi-currency agreement with a built-in derivative instrument, which enabled Mechel to bring down the interest rate on the loan.
Yakutugol Holding Company, Mechel Mining and Mechel – all part of the Mechel group – will act as guarantors of the facility.
The funds will be used to refinance the group’s short-term debt, and is part of its plans to implement its strategy to extend the maturity of its debt portfolio, Mechel chief financial officer Stanislav Ploschenko says.
Mechel would not reveal the margin on the loans when contacted by GTR.