URALCHEM OJSC reports securing a loan of US $4.5 billion


Moscow, Russia – 16 December, 2013. URALCHEM OJSC has secured a loan of up to US $4.5 billion. The loan has been granted for a period of 84 months.

URALHEM OJSC and the plant in Kirovo-Chepetsk are the borrowers in the transaction. VTB Capital Plc is acting as the lender, the loan agent and the documentation agent. The loan guarantees are Voskresensk Mineral Fertilisers, OJSC in Voskresensk, URALCHEM Trading House Ltd, Perm Mineral Fertilizers, JSC, URALCHEM HOLDING P.L.C. and SIA URALCHEM Trading.

Out of the $4.5 billion loan, a major part will be used to pay for the 20% of shares to be acquired in OJSC Uralkali. Part of the borrowed funds can be used to repay the current loan liabilities of the URALCHEM Group and will be called on if the existing creditors of the Group require early repayment of liabilities due to changes in the credit portfolio of the Group.

On 4 December 2013, URALCHEM Group’s shareholders announced an agreement to acquire a package of shares and GDRs in OJSC Uralkali (MICEX-RTS: URKA; LSE: URKA), constituting 20% of total share capital of the company. Closure of the transaction is expected in the near future. These shares will be used as collateral for the loan borrowed from VTB Capital Plc.