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
ERG secures debt refinancing, reaches an agreement with VTB
Under the agreement, the schedule of payments on the debt owed by the Eurasian Resources Group to VTB shall be extended for five years, enabling the company to obtain the necessary financial flexibility. The refinancing creates favourable conditions for ERG to implement its operational plans and investment programme, which comprises of a number of interesting projects between 2016 and 2020. VTB has given the Group an option of extending the loan tenure for two additional years beyond the indicated five-year period.
A week earlier, Eurasian Resources Group also signed two agreements with VTB in Kazakhstan on additional pre-export finance for its aluminium business totalling about $350 million.
Despite an extremely challenging market environment, the Eurasian Resources Group not only meets its targets for debt portfolio optimization but also succeeds in attracting the competitive financing in today’s market.
The extension of the schedule of payments on ERG’s existing debt is combined with additional investments to be made in the company’s most financially attractive projects. Such a consistent expansion of the scope of cooperation demonstrates compelling evidence of ERG in the long term and confidence of the Group’s major strategic partners in its endeavours to successfully develop the company’s assets in the coming years.
‘VTB is one of the company’s key financial partners; it provides us with a systematic and continued support. Our new agreement proves that the business of the Eurasian Resources Group is robust and highly reliable; in addition, it creates an environment for systematic development and steady growth of the company in the long term. The revision of the debt repayment schedule will enable ERG to adhere to its business plan and live through a turbulent time in the markets for the Group’s products more easily. Additional investments in our business and the fact that projects selected by the company attract interest from leading financial institutions prove that the Eurasian Resources Group is on the right path and that its management is efficient. Overall, we will continue to make concerted efforts to consolidate our achievements and to secure a leading position in the global metals and mining industry,’ emphasized Alexander Machkevitch.
Yuri Soloviev commented: ‘This consolidation will allow ERG to proceed with its development strategy against the backdrop of the current market volatility and to reinforce the position of VTB in the financial sector of the CIS region. The today’s agreement cements the earlier achieved agreements and we will continue our strategic partnership going forward.’