Polyus Gold borrowing $68 mln from SocGen with U.S., guarantee
MOSCOW. Oct 27 (Interfax) - Polyus Gold International Limited's subsidiary CJSC Polyus has signed a deal with Societe Generale and Export-Import Bank of the United States, under which Societe Generale provides loans of up to $67.5 million to CJSC Polyus for a medium term period, the Russian gold miner said in a press release.
US ExIm Bank is acting as a guarantor of the loan.
The signed agreement is a precedent transaction providing Polyus Group with access to long-term and low-cost financing for its ambitious investment program.
The agreement will allow CJSC Polyus to use the borrowed funds to finance purchase of various types of mining, processing and transportation equipment and services.
Polyus Gold in July 2011 unveiled an updated development strategy to 2020 that said targeted investment in expansion at $8.7 billion in 2011-2020, including $4.7 billion by 2015. Polyus Gold would boost output at its Russian fields 170% to 115 tonnes per year by 2016, ranking it among the world's top five gold producers.