Eurasian Resources Group and VTB Bank sign a new memorandum
At SPIEF 2017, Eurasian Resources Group (ERG), a leading diversified natural resources producer, signed a memorandum of understanding with VTB Bank, its key strategic partner. The memorandum reflects the intention to develop and further expand the cooperation between the two partners across various areas of the Group's business.
The signing of the memorandum follows an agreement with VTB Bank on the new conditions of principal debt restructuring with ERG's key lenders, which came into force earlier this year. That agreement results in a new debt repayment schedule until the year 2022 (with an additional option of an extension for a further 3 years subject to some conditions), changes in the repayment schedule and an optimisation of financial covenants.
As part of the current memorandum, the partners are planning to develop their cooperation across many different areas, including a possible prepayment for non-ferrous metals to be supplied by ERG.
Alexander Machkevitch, Chairman of the Board of Directors of Eurasian Resources Group, commented: "Today, we reap the benefits of the Group's successful business transformation, which has been achieved through the well-coordinated efforts of our team, efficient implementation of the best management practices, and a strategic focus on sustainable and responsible business development. We believe that deeper cooperation with VTB Bank during our close long-term partnership will promote the further successful development of ERG as a leader of the global mining industry."
Yuri Soloviev, First Deputy President and Chairman of VTB Bank Management Board, said: “We are further developing our relationship with ERG and believe it has significant growth potential. The holding company’s agreement with VTB Bank will enable the company to implement its plans, including expansion in the non-ferrous metals market, while strengthening VTB’s position in the commodities market.”