Chelyabinsk Iron & Steel Works getting 4.3 bln-ruble credit from Sberbank
MOSCOW. Feb 7 (Interfax) - OJSC Chelyabinsk Iron & Steel Works
, which is part of the Mechel group, is raising a six-month renewable loan of 4.3 billion rubles from Sberbank of Russia , the company reported after the credit was approved by the company board of directors.
The metals company needs the money for its current operations.
The interest rate from February 8 to March 31 this year will be 6.4% per annum, from April 1 to August 5 - 6.9% if sales revenues come to as much as 2.5 billion rubles and 6.4% if they top that amount. Payment on the open credit line is set at 0.1%, and interest payments fall due monthly.
Chelyabinsk Iron & Steel Works made 1.962 billion rubles in net losses in Q1-Q3 last year, against sales revenues of 65.852 billion rubles. The company's accounts payable increased 9.349 billion rubles from the start of 2010 to the end of the third quarter, of which debt to suppliers and contractors came to 8.646 billion rubles.
The company is one of the biggest producers of metal roll in Russia.
Mechel consolidates controlling stakes in metals, coal, and energy companies, as well as commercial ports. Its main beneficiary is chair of the group's board of directors Igor Zyuzin, and free float (ADR) represents about 30% of company shares.