14 Oct 2010 18:58

Acron to borrow $2.2 bln for phosphate, potash projects

MOSCOW. Oct 14 (Interfax) - Acron estimates it will need to borrow $2.2 billion for phosphate and potash fertilizer projects, the company's CFO, Alexei Milenkov, told reporters.

"That's our estimated borrowing needs, taking into account the projects we have," he said.

Acron intends to borrow the money from Russian and foreign banks in the period to 2015-2016, "closer to the completion of the potash project," he said, specifically mentioning VTB and Sberbank Russia as potential lenders.

"These are loans that are needed not only for the Olenii Ruchei project, but also to carry out the potash project," he said.

For the time being, Acron is in talks with foreign banks, most of them European, for trade financing and export contracts, Milenkov said.

Acron is building a mining and processing plant at the Olenii Ruchei deposit in the Murmansk region, and is developing a section of the Verkhnekamsk potash field in the Perm territory.