Russia-based Bank Zenit, the parent bank of Banking Group Zenit, has announced that it has extended a credit facility to NLMK's subsidiary Nizhneserginsky metalware-metallurgical plant (NSMMZ) with a limit of up to €43 million, bearing the date of January 31, 2011. The funds are to be used to replenish the working capital of the plant.
The decision to extend the credit to NSMMZ was taken on the back of the plant's sound market position, and due to its reputation as a reliable borrower, which was proved by the long-standing partnership between Bank Zenit and the plant. This credit line is the second within the framework of the business relations between Bank Zenit and NSMMZ. The total volume of lending to date from Bank Zenit to NSMMZ amounts to Ruble 3.1 billion (approx. $94.5 million, according to the current exchange rate).