Uralkali, the global potash producer and exporter, has signed an agreement with Promsvyazbank to open a US$250mn credit line with a 10-year payback period.

The funds will be provided on an unsecured basis. The money will be used to refinance Uralkali’s current liabilities and to finance existing investments.

Viktor Belyakov, Uralkali CFO, said in statement: “This new unsecured credit line demonstrates the ability of Russian financial institutions to provide long-term loans to Russian borrowers. Currently, Uralkali does not plan to increase its leverage; however, we continue to develop relationships with financial partners in order to receive funding on the most favourable terms. The funding secured within this transaction will make it possible for us to refinance part of our current liabilities, reduce financing costs and increase the average tenor and the amount of unsecured loans in our portfolio.”

In June, Uralkali signed a US$450mn loan agreement with five international banks. The self-arranged club deal was initiated in February 2014 and was the company’s debut club unsecured facility. The funds raised under the committed credit line enabled Uralkali to refinance a part of its existing facilities, decrease financing costs and increase the share of unsecured financing in its loan portfolio.