HOUSTON (ICIS)--Uralkali has signed a loan agreement for $450m with five international banks the Russian fertilizer producer announced on Thursday.
Company officials said the loan agreement has maturity rate of five years and will be used to refinance existing Uralkali financial obligations for the Russian potash producer, whose net debt at the end of the first quarter was estimated at $4bn.
Uralkali said in a statement that it had commenced the self-arranged unsecured credit facility deal in February with officials saying it demonstrates the availability of funding available to top-tier Russian borrowers.
“Although Uralkali is not planning to increase its debt, we continue developing relationship with foreign financial institutions in order to obtain funding on favourable terms. The funds raised under the committed credit line will enable us to refinance a part of our existing facilities, decrease our financing costs and increase the share of unsecured financing in our loan portfolio,” said Viktor Belyakov, Uralkali CFO.Click here to watch the latest ICIS Special Report, in which European pricing editors discuss the key issues affecting their markets as we approach the middle of 2014.