The Russian steel and iron ore producer Metalloinvest Holding (Metalloinvest) has announced that its mining and steelmaking subsidiaries, namely, Lebedinsky GOK, Mikhailovsky GOK, Oskol Elektrometallurgical Plant (OEMK) and Ural Steel, have secured Ruble 61.5 billion (about $2.09 billion) in credit from Russian state-run bank VTB.
The credit in question is partly backed by the guarantees of the Ministry of Finance of Russia totaling Ruble 30.75 billion (about $1.04 billion), the contract for which was signed on October 12, 2009. As SteelOrbis previously reported, the state guarantees for VTB's credit line were approved by the commission for sustainable economic development chaired by First Deputy Prime Minister Igor Shuvalov in September 2009.
As announced before, the loan funds will be invested in the production activities of Metalloinvest's Lebedinsky GOK, Mikhailovsky GOK, OEMK and Ural Steel subsidiaries and in their capital expenditures, and will be used as required within several years. The total loan debt will not be increased.
"VTB credits will provide financial sustainability and working capital for our enterprises. Loan funds will also help us to continue already-started investment projects and begin new initiatives aimed at cost saving, increasing production efficiency and output of added value products," Metalloinvest's CFO Eduard Potapov stated.