Belaruskali to repay $1bn loan in one go in September

MINSK, 28 May (BelTA) – OAO Belaruskali plans to prematurely repay the $1 billion syndicated loan in one go on 20 September 2012, Belaruskali representatives told BelTA.

The company has already notified OAO Sberbank of Russia, which is the agent of the deal.

The bulk of the loan ($800 million) will be repaid by pre-schedule redemption of Finance Ministry bonds, which are nominated in foreign currency. The rest of the sum will be covered by Belaruskali’s proprietary sources.

Yet there is a possibility of refinancing the loan, with Belaruskali and Sberbank still in negotiations. It is also possible that if the syndicated loan is repaid ahead of schedule, another loan may be taken out.

A credit agreement for Sberbank of Russia and the Eurasian Development Bank to allocate a $1 billion syndicated loan to the Belarusian company OAO Belaruskali for one year was signed in Minsk in November 2011. Sberbank’s share was $900 million, with the rest covered by the Eurasian Development Bank.

The Belarusian government guaranteed that the loan, the interest rate and other fees required to use the guaranteed loan will be paid.

The loan was allocated to Belaruskali for general corporate purposes, including the acquisition of proprietary shares by the company, acquisition of any securities, bonds or promissory notes issued or guaranteed by Belarus.

Earlier First Vice Premier of Belarus Vladimir Semashko was quoted as saying Belaruskali will repay the $1 billion syndicated loan ahead of time using its own money and government funding. As one of the reasons behind the decision the official mentioned the fact that the terms of the one-year loan get worse after the first six months.