Mechel, one of the leading Russian mining and metals companies, has announced the signing of long-term loan facilities worth $500 with Russian bank Gazprombank for the provision of credit lines to its subsidiaries Yakutugol Holding Company and Southern Kuzbass Coal Company. The new loan facilities include a five-year tenor with a three-year grace period.
The loans will be used to finance operational activities, which will enable Mechel to use the company's operating cash flow to refinance a significant part of its short-term debt and thus dramatically improve the structure of Mechel's credit portfolio.