Mechel announces prolongation of 22-billion-ruble credit facilities

Mechel announced signing agreements with Gazprombank for the extension of short-term credit facilities totalling 22 billion rubles (approximately 747 million US dollars).

Gazprombank extended the maturities on revolving credit lines opened for Chelyabinsk Metallurgical Plant, Mechel-Service and Mechel-Energo by 3 to 5 years.

“Our cooperation with Gazprombank once again demonstrated its strategic importance for the Group and its remarkable efficiency. This extension, together with the 500-million-dollar loans granted by Gazprombank less than a week ago and our efforts to re-finance the short-term share of our debt, undertaken over the past 3 months, made a key improvement in the structure of the Group’s credit portfolio. This is not only another proof of our lenders’ trust in Mechel, but also a platform for further optimization of the company’s debt by extending credit instruments and decreasing interest expense,” Mechel’s Chief Financial Officer Stanislav Ploschenko noted.