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Mechel Announces Opening of Credit Facilities by Gazprombank
02/10/2009 - Mechel OAO announces the opening of credit lines totaling $1 billion by Gazprombank Open Joint-Stock Co.
Mechel OAO announced that Gazprombank Open Joint-Stock Co. has opened credit lines totaling $1 billion for Mechel's subsidiaries.
Mechel said its subsidiaries would use the credit facilities, which have a three-year term, primarily for short-term debt repayment.
“The new long-term credit facilities allow Mechel the flexibility to manage our short-term liabilities and navigate the near-term economic challenges while continuing to execute on our long-term strategy of developing production assets,” said Mechel’s Chief Financial Officer, Stanislav Ploschenko.
Mechel Co. and Gazprombank have built strong ties through their well-established partnership. Most recently (December 2008), the two partners signed an agreement arranging financing for construction of a new universal rail and structural steel mill at Mechel’s CMP OAO. Pursuant to that agreement, Gazprombank OAO participates in fund raising for implementation of the project, with facilities totaling up to $255 million.
Mechel, one of the leading Russian mining and metals companies, unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat, and electric power. Its business includes four segments—mining, steel, ferroalloys and power—and its products are marketed domestically and internationally.
