Mechel, one of the leading Russian mining and steel groups, has announced the prolongation of credit facilities worth $1 billion secured for its mining subsidiaries in February 2009 from Gazprombank, which is one of the three largest banks in Russia.
According to the amendments to the credit facility agreements signed by Mechel Mining's subsidiaries and Gazprombank, maturity of the credit facilities extends from three years to six years. Additionally, the parties have agreed to reduce both the interest rate and the security amount. Repayment of the credit body will start in three years and will be made by equal installments on a quarterly basis.
The $1 billion credit facilities have been used to finance the group's current operations, which allowed it to repay a part of its short-term debt.