Mechel PAO, a leading Russian mining and metals company, reports refinancing its US$1 billion syndicated pre-export facility with a pool of international lenders.
The restructuring became possible by a credit line in euro granted by VTB Bank with maturity in April 2022. The grace period on the body of the debt is set until April 2020.
Debt buyback from lenders yielded Mechel financial revenue totaling about 13 billion rubles.
“Refinancing the syndicated loan enabled us to reduce the share of the Group’s unrestructured debt from 22% to 8%, decrease the number of foreign lenders in our overall debt portfolio, synchronise the loan’s conditions and debt repayment schedule with current conditions of our loans lent by Russian banks, as well as reduce borrowing costs,” Mechel PAO’s Chief Financial Officer Nelli Galeyeva noted.
Read the article online at: https://www.globalminingreview.com/finance-business/23012019/mechel-refinances-syndicated-pre-export-loan/