Mechel Announces Opening of Credit Facilities in the Amount of US$1 Billion by Gazprombank
Monday February 9, 11:00 am ET
MOSCOW, February 9 /PRNewswire/ -- Mechel OAO (NYSE: MTL - News), one of the leading Russian mining and metals companies, today announced that its subsidiaries have been provided with lines of credit totaling US$1 billion from Gazprombank OAO.
Gazprombank Open Joint-Stock Company has opened credit lines totaling US$1 billion for Mechel's subsidiaries. Credit facilities provided will be used mainly for short-term debt repayment.
The credit facilities provided have a three-year term.
Mechel Company and Gazprombank have strong ties through a well-established partnership. In particular, in December 2008 they signed an agreement arranging financing for the contract of the universal rail and structural steel mill construction at Mechel's CMP OAO. Pursuant to that agreement, Gazprombank OAO participates in fund raising for implementation of the project, with the facilities amounting up to US$255 million.
"The new long-term credit facilities allow Mechel the flexibility to manage our short-term liabilities and navigate the near-term economic challenges while continuing to execute on our long-term strategy of developing production assets," said Mechel's Chief Financial Officer, Stanislav Ploschenko.
Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
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