Eurasian Resources Group enters into a principal agreement with China's NFC to complete the construction of its project in Africa; EXIM and ICBC to support the financing, Sinosure to provide the insurance
Eurasian Resources Group has agreed with VTB Bank to restructure its debt
Eurasian Resources Group (ERG), a leading diversified natural resources producer, and VTB Bank have signed an additional agreement to change the terms of ERG’s debt financing.
This agreement includes an extension in the debt repayment period for US$3 billion to 2022, changes to the debt payment schedule and an optimization of financial covenants.
The new parameters are expected to come into force in 2017 (subject to some additional conditions in the agreement) and will further improve ERG’s liquidity.
Alexander Machkevitch, ERG’s Chairman of the Board, said: “Since ERG embarked on its transformation in 2014, we have seen considerable progress, improving efficiency, streamlining costs and increasing our flexibility, while strengthening the overall competitiveness of the business. An improved EBITDA margin was recorded by the Group for 2016. We are grateful to our partners, particularly to VTB Bank, for their long-term strategic cooperation and highly constructive approach to doing business.”
“As a market leader, ERG is now further increasing its profitability as we develop the most promising investment projects in the markets for aluminium, iron ore, ferroalloys, copper and cobalt, as well as in the power sector. The Group has a competitive portfolio of projects in each of the key regions where it operates, including the Republic of Kazakhstan, Africa and Brazil.”