Sberbank responds to Putin's request to finance Belaruskali, planning $2 bln loan with Deutsche Bank
SOCHI. Aug 5 (Interfax) - Top Russian bank Sberbank and Deutsche Bank plan to provide a $2 billion loan to Belaruskali, Sberbank's President German Gref said during a meeting with Prime Minister Vladimir Putin.
Putin asked about the results of an estimate on possible financing for Belarusian projects. "German Oskarovich, I asked you to look into the possibility of financing several projects in Belarus. I know that your experts have been at work. What are the results?" Putin asked.
Gref said that the bank had decided to finance Belaruskali.
"We've decided to provide a $2 billion loan along with Deutsche Bank to Belaruskali, one of the leading enterprises in Belarusian industry. For Belarus this, is of course, a difficult period, but for us this is quite a reliable and good loan," Gref said.
Gref added that the fertilizer producer would put up its export contracts (90% of Belaruskali's production is exports) and 35% of its charter capital as guarantee for the loan.
"All this is being done according to international standards along with our western partners. Of course, this is a difficult period and it will very much help the Belarusian economy overcome the crisis," he said.
Deutsche Bank and Sberbank have yet to provide further details on the transaction. However, Sberbank said that the funds would be provided in a syndicated loan. "Sberbank's loan committee has decided to provide OJSC Belaruskali a $2 billion in the form of a syndicated loan," the bank told Interfax.
Gref commented in mind-June that Sberbank's partnership with Belarusian authorities. He then said that the bank is in negotiations with the Belarusian government and hopes to become one of the consultants in the privatization of the country's assets.
In addition, Sberbank reviewed the option of providing a loan to Suleiman Kerimov's Nafta Moscow for purchasing a controlling packet in Belaruskali. Andrei Donsky, the bank's deputy chief, said in a June that Sberbank had started discussions for possibly financing this purchase. He said that Sberbank would not be the sole creditor in the deal.
At the start of June, reports surfaced that Nafta was close to reaching an agreement with the Belarusian authorities to acquire 50% plus one share in Belaruskali. The transaction was based on an estimate that put the entire company at $30 billion and might come to $15 billion.
However, Belarusian First Deputy Prime Minsiter Vladimir Semashko said that his government has no plans to sell a stake in Belaruskali.
