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 improves the debt service conditions with Sberbank of Russia PJSC
On the sidelines of the 13th Interregional Cooperation Forum of Kazakhstan and Russia, currently being held in Astana in the presence of the respective Heads of State, Eurasian Resources Group (ERG), a leading diversified natural resources producer, has signed a new agreement with Sberbank of Russia PJSC (Sberbank), one of its key lenders.
The new agreement stipulates a drop in the interest rate and a range of measures to distribute interest payments in the optimal way, which takes into consideration market conditions in the raw materials sector. The parties have also agreed to amend the financial covenants enabling the Group to reduce its sensitivity to the market and to considerably mitigate the operational risks. Hence, the agreement implies better conditions of servicing ERG’s debt.
Under conditions of the agreement signed with Sberbank earlier this year, the Group’s debt maturity profile has been extended until 2020 (with an option to further extend the loan tenor for two additional years), and the amount of payments for 2016-17 has been considerable decreased.
“Held at the highest level, this Forum is a major event to further develop cooperation between Kazakhstan and Russian businesses. The agreements reached with Sberbank will allow ERG to substantially improve repayment terms for the existing debt, increase resilience of the business and support ongoing development projects,” said Dr Alexander Mashkevitch, ERG’s Chairman of the Board.