VTB Bank made a USD 300 million loan to Pipeline Metallurgical Company (TMK). This was a further step aimed to enhance long-term cooperation between the Bank and the Company, which goes back to 2005.
The Company shall channel the loan into the repayment of its commitments to the holders of its first issue Eurobonds. TMK has redeemed the first issue Eurobonds at their nominal value of USD 300 million, and also made a coupon payment amounting to USD 12.75 million for the 6th coupon period. JSC TMK Eurobonds were first issued in September 2006 maturing in three years and having a coupon rate of 8.5 percent per annum.
Presently, nine Russian companies belonging to JSC TMK and two of its foreign trade operators are among VTB Bank customers. The Bank has been developing its business with TMK along a diversified spectrum of financial services, including the whole range of banking products related to foreign economic activities of the group.
TMK (LSE: TMKS) is Russia’s largest manufacturer of steel pipes and ranks among the global top three pipe producers.
In 2008, TMK sold over 3.2 million tones of pipe products to more than 60 countries.
TMK has production plants in Russia, the United States, Romania and Kazakhstan.