30.10.2009
URALCHEM announces MFP KCCW debt restructuring
Moscow, Russia – 29 October, 2009 – URALCHEM, OJSC, (“the Company” or “URALCHEM”), one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS, today announced that it has reached an agreement with its creditors on the refinancing of US$ 60 million debt of MFP KCCW, CJSC (Mineral Fertilizer Plant of Kirovo-Chepetsk Chemical Works, Closed Joint Stock Company, Kirovo-Chepetsk, Kirov Region). The agreements postpone debt repayment from 2009 to 2010.
URALCHEM and Raiffeisen Bank have agreed on the following schedule for debt repayment: US$ 20 million payable in the 1st quarter of 2010, and US$ 40 million in the 2nd quarter of 2010. Interest rates for this credit remained unchanged.
This refinancing agreement with ZAO Raiffeisen Bank has become an important milestone in the process of optimizing the Company’s financing obligations. These steps, together with efficiency improvement and cost reduction programmes, will allow URALCHEM to continue its successful development and growth.
Anton Vishanenko, CFO of URALCHEM commented: “Our new agreements with the banks demonstrate their confidence in the further sustainable development of the mineral fertilizer industry, reliability of the Company’s investment plans, and the efficiency of its production processes”.