31 Mar 2010 18:15

EuroChem gets 10-yr $261 mln syndicated loan guaranteed by ECIC

MOSCOW. March 31 (Interfax) - Russian fertilizer producer EuroChem signed on March 30 a 10-year credit-line agreement for $261 million at LIBOR plus 2.5%, which is guaranteed by Export Credit Insurance Corporation of South Africa Limited (ECIC).

A statement from the company says the funds will be used to finance the building of a latticed shaft at the Gremyachinsky potassium salts deposit by the South African company Shaft Sinkers (Pty) Limited.

The authorized credit organizers were Credit Agricole Corporate and Investment Bank, South African Division, Citibank, N.A., South African Division, Industrial Development Corporation of South Africa Limited, and The Standard Bank of South Africa Limited. Credit Suisse AG was also involved in the financing.

Barclays Capital acted as consultant to the deal. ECIC's agent for the credit line was Absa Capital, the passport bank was Barclays Bank Russia.

According to EuroChem, the syndicated loan was closed with an over-subscription.

The company's financial director, Andrei Ilin, said the deal is at once the first credit ECIC has extended to a Russian company and the first credit line opened for EuroChem under an export credit agency guarantee.

EuroChem's corporate finance management chief, Alexander Gavrilov, said the credit offers long-term liquidity that keeps the company's debt burden at an acceptable level.