Russian agrochemical firm Eurochem has brought in the biggest loan Central and Eastern Europe’s chemicals sector has seen since 2009.

Eurochem secured commitments worth US$1.3bn in an oversubscribed pre-export finance (PXF) club loan.

Bank of America, BTMU, Barclays, BNP Paribas, Citi, Crédit Agricole, HSBC, ING, Natixis, Nordea, RZB, RBS and SMBC acted as mandated lead arrangers and bookunners on the five-year facility.

The Russian firm is paying 180 basis points over Libor following a two-year grace period.

Around US$860mn will be used to refinance the outstanding balance from Eurochem’s 2008 US$1.5bn syndicated PXF facility.

The remaining money will be used for general corporate purposes, including capital expenditure and potential M&A activity.

The deal marks an improvement in credit terms for Eurochem; the 2008 deal saw the Russian firm settle for a four-year tenor, though the pricing remains the same at 180 basis points.

“In spite of today’s volatile environment, we secured better terms compared to Eurochem’s previous PXF facility,” says Andrey Ilyin, chief financial officer at the firm.

“This transaction extends the average maturity profile of our debt, and its favourable repayment structure releases operating cash flow for strategic investments.”