On Wednesday 10 April VTB Bank and Mechel signed a RUB 40 billion five-year loan agreement. The steel and coking coal producer will use the facility to refinance its current debt.
VTB and Mechel have seen their cooperation grow steadily over the past decade, with VTB providing the industrial giant with a wide range of banking services as well as loan resources.
“VTB Group has been our reliable partner for years,” Mechel's Senior Vice President for Finance Stanislav Ploshchenko said. “This loan deal has reconfirmed our productive cooperation. Securing a new loan from VTB Bank will enable the company to refinance a large share of its loans that are due in 2013, which will significantly improve the group's debt structure over the next 12 months and give us more flexibility in cash flow management.”
“Throughout our years of cooperation, Mechel has proved to be a high quality borrower,” said Yuri Soloviev, VTB Bank First Deputy President and Chairman of the Management Board. “Working with mining and metals companies is one of VTB Group’s strategic priorities. We are ready to provide a stable financial platform for the successful development of our partners’ business.”
Mechel is one of the leading Russian companies and comprises four divisions – mining, metallurgy, ferroalloy and energy. Mechel Group unites companies producing coal, iron ore concentrate, nickel, chromium, ferrosilicon, steel, rolled products, high value added goods, as well as heat and electricity. Mechel’s products are sold in Russian and overseas markets.