Russian fertiliser firm Eurochem signs $1.5 bln loan
[
22.10.08 10:23
]
Eurochem said it had signed a finance agreement for the four-year loan with a group of several major banks. The funds will contribute to a $3.2 billion investment programme as well as refinancing existing debt and boosting working capital.
"The extension of credit to a Russian company is confirmation that foreign financial institutions believe in our economy," Denis Manturov, Russia's deputy industry and trade minister, said in a separate statement.
Russia has unveiled a $200 billion-plus rescue package to bail out its economy as the global financial crisis bites. State banks have already taken over four of the country's top 50 banks and the government is now preparing to support the real economy.
"The government is now paying specific attention to supporting the real economy and concrete measures for a whole range of sectors are already being worked out," Manturov said.
Eurochem said the loan was being arranged by several banks: ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, Barclays, Bayerische Hypo-und Vereinsbank, BNP Paribas, ING, JSB Orgresbank/Nordea, Societe Generale Corporate & Investment Banking, Banque Societe Generale Vostok and Sumitomo Mitsui Banking Corporation.
Commerzbank has joined the lead group as senior lead arranger.
Eurochem gave no more details of the loan.
Reuters Loan Pricing Corp (RLPC) reported on Sept. 16 that Eurochem had launched syndication of the loan.
RLPC, citing a banking source, reported at the time the deal was to pay a margin of 180 basis points (bps) over LIBOR. Lenders were invited to commit $75 million or more for an upfront fee of 90 bps, $50 million for 75 bps, or $25 million for 60 bps.
Eurochem posted $3 billion in sales last year and plans to invest $3.2 billion by 2012 developing its production facilities and building new capacity.
/"Guardian", 21.10.2008/