Published: September 21, 2011
Uralkali, a Russian potash producer, has borrowed US$1bn from UniCredit and ING.
The five-year deal cuts the cost of the debt Uralkali inherited following its merger with rival Silvinit in June.
On the eve of the financing’s announcement, Uralkali’s CFO, Viktor Belyakov, told EMEA Finance that reducing the cost of Silvinit’s debt was a priority for the company.
“We'll repay part of this loan from cashflows of the united company and refinance the rest, most probably with a syndicated loan from international banks,” he said.
The UniCredit and ING funding refinances the loan Silvinit secured from Sberbank to buy a licence to develop a block in the Verkhnekamskoe potash and magnesium salt deposit.
The new loan lowers Uralkali’s average interest rate to some 3% while decreasing its currency risks.