Uralchem secures $4.5bn loan to fund Uralkali stake purchase

17 December 2013 12:24  [Source: ICIS news]

LONDON (ICIS)--Russia-based fertilizer producer Uralchem said on Tuesday that it has secured a loan of up to $4.5bn (€3.3bn) from VTB Capital, with a large part of the funds to be used to finance its acquisition of a 20% stake in local potash giant Uralkali..

A portion of the funds will be used to repay the Uralchem's current loan liabilities, the company said, in the event that existing creditors of the fertilizer producer require early repayment due to changes in the credit portfolio of the group.

Uralchem’s investment in Uralkali came weeks after industrialist Mikhail Prokhorov took a 21.75% stake in the business through investment vehicle ONEXIM Group, meaning that total of 41.75% of shares in one of the world’s most powerful fertilizer producers have changed hands in the closing months of 2013.

The shares acquired in the Uralkali stake purchase will be used as collateral for the loan, Uralchem added. VTB Capital is a subsidiary of state lender VTB.

Loan guarantors include Voskresensk Mineral Fertilisers, OJSC in Voskerensk, URALCHEM Trading House, OJSC Minudobrenia in Perm, URALCHEM HOLDINGS, and SIA URALCHEM TRADING.

($1= €0.73)

By: Tom Brown
+44 208 652 3214

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