24 Jan 2011 11:55

MMK guarantees Swiss trading subsidiary's $600 mln loan owed to BNP Paribas

MOSCOW. Jan 24 (Interfax) - Shareholders in Magnitogorsk Iron & Steel Works (MMK), at an extraordinary meeting held on January 20, approved signing a guarantee agreement on a loan for MMK Trading AG received from BNP Paribas Swiss Bank, the Russian company said in a statement.

The plant guarantees meeting debts owed by its Swiss trader, MMK Trading AG, on a loan facility worth $600 million. The guarantee is active for three years from the date of the agreement signing. The loan is for pre-export and trade financing. MMK Trading is the beneficiary party.

Furthermore, the shareholders approved the signing of a series of contracts for supply of metallurgical products between MMK and MMK Trading AG.

MMK is one of Russia's biggest metallurgical producers. The main beneficiary in the complex is its board director, Viktor Rashnikov, who controls 86.6% of the shares in the enterprise.