VTB could use Uralkali shares to raise financing at Central Bank
MOSCOW. July 10 (Interfax) - VTB Capital has transferred the mandates of the security holder on the loan of Uralchem, the collateral on which is a 19.99% stake in Uralkali , to its parent bank, VTB , UralChem said in a statement.
As a result VTB could use these shares to raise financing at the Central Bank of Russia, a source familiar with the situation told Interfax.
In addition, UralChem and the creditor agreed on changing a number of financial covenants on the loan for $4.5 billion and on new ways to guarantee the borrower's liabilities. UralChem did not comment on these changes in the credit agreement.
UralChem raised a seven-year loan for $4.5 billion in December 2013 from VTB Capital (the investment subsidiary of VTB) for the purchase of a 19.99% stake in Uralkali and for refinancing debt obligations. As a guarantee for the loan UralChem pledged the acquired shares and GDR of Uralkali to the bank.