20 Dec 2013 14:50

Mechel's Chelyabinsk steel works raises 25.5-bln ruble Sberbank loan

MOSCOW. Dec 20 (Interfax) - The Mechel coal and steel group's flagship Chelyabinsk Metallurgical Plant (ChMK) (MOEX:CHMK) has raised a five-year non-revolving credit facility of 25.5 billion rubles from Sberbank , the company says in information.

The agreement was signed on December 19.

Mechel told Interfax that the funds were being raised in order to refinance the holding's debt to Sberbank, and that around 16 billion rubles of it would refinance short-term debt due for repayment in December 2013 and in 2014.

The company said the refinancing was aimed solely at restructuring existing debt and would not cause overall debt to mount.