Standard Bank London has completed syndication of a new US$50mn pre-export finance facility for Russian copper producer and exporter OAO Uralelectromed (UEM), a member of Urals Mining and Metallurgical Group (UMCC).
Standard acted as mandated arranger, underwriter and bookrunner with ING and HVB as arrangers, Natexis Banques Populaires as co-arranger and Ost-West Handelsbank as lead manager. The tenor is two years, with an amortising repayment structure and is secured by exports of copper products to Glencore International, who also took part in the financing. The newly opened ZAO Standard Bank in Moscow has assumed responsibilities of the passport bank under the financed export contract.
The facility is secured by upstream and downstream guarantees from UMCC group companies capturing all stages of copper production cycle, including mining of copper ore and production of copper blister.
UEM is the second largest producer of copper in Russia with market share of approximately 38%. UEM produces refined copper cathodes and ingots, selenium powder, tellurium, aluminium alloys, tin free casting bronzes, lead alloys, casting braces and other products. It is also one of the largest producers of refined gold and other precious and rare metals in Russia