In early June, Kazakh copper producer Kazakhmys successfully reduced and refinanced a €170mn revolving loan facility for subsidiary MKM, the group’s downstream copper business in Germany.

The three-year trade finance facility, used for working capital requirements, was arranged by Deutsche Bank, and was oversubscribed in syndication.

The facility is being provided by a syndicate of nine international banks led by Deutsche Bank, Amsterdam Branch (mandated lead arranger and bookrunner); ING Belgium, Brussels, Geneva branch; Norddeutsche Landesbank Girozentrale; Société Générale and WestLB (all as mandated lead arrangers), as well as Lloyds TSB; Commerzbank; Landesbank Baden-Württemberg and Raiffeisenlandesbank Niederösterreich-Wien (as lead arrangers). The margin of the facility is 300 basis points.

The group says it has been able to reduce the size of the facility due to lower copper prices and more efficient management of inventory.

Matthew Hird, chief financial officer comments: "We are extremely pleased with the outcome of the refinancing, given the challenging conditions in financial markets.

"The oversubscription reflects the quality of MKM's operations and management and a new three-year facility enables MKM to continue developing their business."
continue developing their business."