Syndication of the “B “tranche of a US$75mn seven-year facility for Russian mining and fertiliser company Ural Kaly has been fully subscribed. Participants were offered US$10mn at 90bp and US$5mn for 70bp.
The loan is co-financed by the European Bank for Reconstruction and Development (EBRD), which will fund half the transaction. The other half is underwritten and syndicated by ABN Amro.
Most of the funds will be used to build power generating facilities to lower production costs and cut greenhouse gas emissions. The remainder will be used for the construction of new warehouses and the acquisition of mining equipment and rail transport.
Ural Kaly is the fourth largest producer of potassium fertilisers in the world. About 85% of produce is exported to China, Brazil and India.