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 secures debt refinancing with VTB Bank and Sberbank until 2020 and beyond
Eurasian Resources Group (ERG), a leading diversified natural resources producer, has closed transactions aimed at refinancing its debt with two of its key lenders, VTB Bank and Sberbank. The agreements extend the Group’s maturity profile until 2020 and beyond, enhancing the Group’s financial stability; they mark another step towards transforming the Group and restoring a productive dynamic to ERG’s business plans.
Under the terms of the new agreements with VTB Bank and Sberbank, ERG’s respective repayment schedules will be extended with the majority of the outstanding amount totalling $5.8 bn due in 2020 and an option to further extend the loan tenors for two additional years under certain conditions. ERG’s debt payments to the banks in 2016-17 to decrease to a total of $200 mln.
Dr Alexander Machkevitch, ERG’s Chairman of the Board, said: ‘The secured refinancing agreements are a major development for our business after the prioritization of core assets and strategic projects for further development. As an ambitious organisation, these agreements provide us with the stability and security we need to achieve our goals. They build on our long-standing partnership with VTB Bank and Sberbank and reinforce this strategic cooperation.’
‘Flexibility and adaptability are a key to ongoing success in the current market conditions. Despite all the difficulties for our industry in the current transformation period, ERG is moving forward as a company. We are expanding our operations around the world while also ensuring high capacity utilisation at our existing plants,’ added Dr Machkevitch.
The secured refinancing with VTB Bank and Sberbank further improves ERG’s liquidity and creates more favourable conditions for the Group to implement its most promising investment projects in Kazakhstan, Africa and Brazil.