Kazakh ERG reaches debt restructuring agreement with Sberbank, VTB
ASTANA. July 18 (Interfax) - Kazakh mining and smelting group Eurasian Resources Group (ERG) has concluded a debt restructuring deal with its two main creditors, VTB and Sberbank of Russia , ERG said in a statement.
"In accordance with the terms of the new agreement with VTB and Sberbank, ERG's debt repayment schedule has been extended. The term for repayment of the bulk of debt amounting to $5.8 billion has been moved back to 2020 with the option for a further two-year extension if certain conditions are met. The payment due to those two banks by the group in 2016-2017 has been reduced to $200 million," ERG said.
The restructuring will "bolster the group's financial stability and serve as the next step in its transformation, enabling ERG to step up implementation of business development plans," and create more favorable conditions for implementing promising investment projects in Kazakhstan, Africa and Brazil.
"Conclusion of the refinancing agreement is an important event in the development of the group following the prioritization of core assets and strategic projects for further development. These documents will ensure the company's stable development and serve as a guarantee for achieving its ambitious aims. They are a continuation of our longstanding partnership with VTB and Sberbank and facilitate the structuring of this strategic cooperation," ERG board chairman Alexander Mashkevich is quoted in the statement as saying.
