Amendments to the credit facilities were signed by subsidiaries of Mechel Mining, which is part of the Mechel Group, and VTB Bank, which extends the maturities until 2015, MarketWatch.com reports.
VTB Bank opened short-term, non-secured credit lines worth $462 million in 2008 for subsidiaries of Mechel Mining. The loan maturities were later extended until this year.
“VTB Bank is a longstanding strategic partner for Mechel Group, and signing these agreements is additional proof of our successful partnership,” Mechel OAO’s Chief Financial Officer Stanislav Ploschenko said, according to MarketWatch.com. “These accords will enable us to optimize the Group’s credit portfolio structure by significantly decreasing the share of short-term loans, which is particularly important in light of significant volatility in the financial market. Extension of these facilities by three years also shows the great trust one of Russia’s leading banks has for our company as a reliable partner and a high-quality borrower.”
Mechel is one of the leading Russian companies, with four business segments that include mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power, and its products are marketed domestically and internationally.