Syndication Closes For Eurochem's $1.5B Pre-Export Loan

[ 17.11.08 10:21 ]

Syndication has closed for a $1.5 billion, four-year, pre-export finance facility for OAO Eurochem, Russia's largest maker of nitrate fertilizers, the banks arranging the facility said Friday in a statement.

"Despite the difficult market environment, the facility attracted good appetite and general syndication closed oversubscribed with commitments being scaled back," the statement said.

Proceeds from the deal will be used for refinancing of existing loans and for general corporate purposes, the statement added.

The Bank of Tokyo-Mitsubishi UFJ Ltd., Barclays PLC, Bayerische Hypo- und Vereinsbank AG, BNP Paribas SA, ING Wholesale Banking, JSB Orgresbank, Royal Bank of Scotland Group PLC, Societe Generale SA and Sumitomo Mitsui Banking Corp. acted as joint bookrunners for the transaction.

According to the company's Web site, Eurochem is the largest manufacturer of mineral fertilizers in Russia and ranks among the top three European leaders and top 10 world leaders in the sector.

It has adopted a development strategy to 2012, under which it plans to increase manufacturing capacity by investing $3.2 billion in the development of production and the construction of new facilities.

/"Dow Jones", 14.11.2008/