Russia-based steelmaking and mining giant Evraz has announced the signing by Evraz ZSMK (West Siberian Metallurgical Plant) and Evraz NTMK (Nizhniy Tagil Steel Works) of a $425 million five-year pre-export credit facility agreement with a syndicate of international banks. Interest under the facility is payable at a rate equal to LIBOR plus a margin calculated by reference to Evraz's net leverage ratio, currently set at 3.5 percent, and will amortise in equal quarterly instalments after a grace period of 24 months. The facility is secured by the borrowers' export revenues and is guaranteed by parent company Evraz and Evraz's trading company East Metals AG.
The proceeds will be used to refinance Evraz's existing financial indebtedness.