Mechel, one of the leading Russian mining and steel producing groups, has announced that its subsidiaries have been provided with three-year term credit lines totaling $1 billion from one of the three largest banks in Russia, namely Gazprombank.
Mechel and Gazprombank have strong ties through a well-established partnership. As SteelOrbis previously reported, in December 2008 Mechel concluded an agreement with Gazprombank for the financing of the construction of a rail and structural steel mill at its subsidiary Chelyabinsk Metallurgical Plant. Pursuant to that agreement, Gazprombank participates in fund raising for implementation of the project in question, with the facilities amounting up to $255 million.
"The new long-term credit facilities allow Mechel the flexibility to manage our short-term liabilities and navigate the near-term economic challenges while continuing to execute our long-term strategy of developing production assets," Mechel's CFO Stanislav Ploschenko commented.