30 October 2013 14:51 [Source: ICIS news]
LONDON (ICIS)--Russia's Uralkali has signed a loan agreement for €171.4m ($234.8m) to finance the construction of two vertical shafts at the Ust-Yayvinsky potash mine, the company said on Wednesday.
The loan facility, with UniCredit Bank and DZ Bank, will allow German owned engineering company Deilmann-Haniel Schachtostroj to proceed with the construction work, it added.
The political and commercial risks of the loan facility are covered by Euler Hermes, the official German export credit agency, Uralkali – involved in an ongoing dispute with Belarus over the scrapping of an export trading venture and the subsequent arrest by Belarusian authorities of Uralkali CEO Vladislav Baumgertner – said.
Viktor Belyakov, acting Uralkali CEO, said: "Our first export credit agency-backed facility confirms the ability of the company to raise financing from the leading European banks, while the cover of Euler Hermes demonstrates the support of Uralkali's strategy by international financial institutions. This deal further diversifies Uralkali's loan portfolio and prolongs its average maturity."
Uralkali accounts for about one-fifth of global potash production, according to company figures.
The company's assets include five mines and seven ore-treatment mills in the towns of Berezniki and Solikamsk in Russia's Perm Region.
($1 = €0.73)
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