Mechel announces prolongation of VTB Bank credit facilities

Mechel, one of the leading Russian mining and metals companies, announces the extension of credit facilities totalling 13.6 billion rubles (approximately 462 million US dollars*) previously obtained from VTB Bank for Mechel’s enterprises.

Subsidiaries of Mechel Mining, which is part of Mechel Group, and VTB Bank signed amendments to the credit facilities, extending the maturities by three years until 2015.

In late 2008, VTB Bank opened short-term non-secured credit lines totaling 13.6 billion rubles (approximately 462 million US dollars*) for subsidiaries of Mechel Mining. The loans’ maturities were later extended until 2012. The credit facilities were used to finance the borrowers’ current operations.

“VTB Bank is a longstanding strategic partner for Mechel Group, and signing these agreements is additional proof of our successful partnership. These accords will enable us to optimize the Group’s credit portfolio structure by significantly decreasing the share of short-term loans, which is particularly important in light of significant volatility in the financial market . Extension of these facilities by three years also shows the great trust one of Russia’s leading banks has for our company as a reliable partner and a high-quality borrower,” Mechel OAO’s Chief Financial Officer Stanislav Ploschenko noted.

* Based upon the Russian Central Bank exchange rate of 29.47 RUR/$ as of April 14, 2012.