URALCHEM has obtained a syndicated loan


Moscow, Russia – 20 November, 2013. The URALCHEM group, a leading Russian producer of mineral fertilizers, has refinanced part of its loan portfolio by procuring a 5-year unsecured syndicated loan. The proceeds of the loan have been used to refinance the current syndicated loan deal, concluded in December 2012, under which the Group used assignment of rights on its export contracts as security interest for the loan.

The syndicated loan was obtained on 18 November 2013 from a pool of leading international and Russian banks. Nordea Bank AB (publ), HSBC Bank PLC, Raiffeisenbank and and Rosbank (Société Générale Group) were Mandated Lead Arrangers. Within the framework of the deal, OJSC Nordea Bank acted as Documentation Agent and Nordea Bank AB (publ) acted as Facility Agent. The deal was closed within a very short time, only four weeks from the date of the official invitation to the banks.

The plant in Kirovo-Chepetsk acted as the borrowing party from the URALCHEM Group. URALCHEM OJSC, the plant in Voskresensk, the plant in Perm, SIA URALCHEM Trading in Riga and URALCHEM Trading House were the guarantors of the loan.

The amount of the loan in Euros is the equivalent of US $200 million. The interest rate is Euribor 3m + 2.5%. The loan documentation made provision for an option of a drawdown in Euros, which the company used. The loan period is 5 years with a grace period of 2 years. This was the debut unsecured syndicated loan for the Group, and it made it possible to release secured assets on the assignment of rights on export contracts. The new deal has allowed for reduction of the interest rate on the loan by more than 1.5%, as well as the increase of the average time frame for repayment of the loan.

Dmitry Konyaev, CEO of URALCHEM OJSC commented, "Our mutually beneficial cooperation with the leading banks that form the syndicate has been going on for years. The terms of the new deal and the efficiency of its closing show the high confidence that the banks have in the Group and the sustainability of its financial position. We are grateful to our creditors and appreciate our partnership with them."