The credit lines are applicable for a five-year period besides a three-year grace period and those of them will comprise a bi-currency arrangement.
Mechel chief financial officer Stanislav Ploschenko stated that despite the current volatility of global financial markets the company has entered a mutually profitable agreement with Russia’s largest state bank.
"The loaned funds will be used exclusively for refinancing the Group’s short-term debt, thus becoming an important step in implementing our strategy of extending the maturity of our debt portfolio.
"We also consider the loan granted at a relatively difficult time for the mining industry as additional proof of our partner’s trust in Mechel and the strategy we are realizing," Ploschenko added.
Yakutugol Holding, Mechel Mining and Mechel are the guarantors of the facility.
