Belaruskali’s loan from Sberbank of Russia extended for one year

Sberbank CIB will extend the loan term for OAO Belaruskali for one year.

BelTA reported earlier that in October 2012 the Belarusian potash manufacturer Belaruskali took out a $1 billion loan from Sberbank CIB for three years against guarantees of the Belarus government. The money was borrowed in order to refinance the bridge loan taken out in 2011 for the sake of stabilizing the financial situation in Belarus. The loan Belaruskali refinanced in 2012 was the $1 billion one-year syndicated bridge loan the Belarusian company took from Sberbank of Russia ($900 million) and the Eurasian Development Bank in late 2011.

In view of the loan term’s extension the overall loan term granted by Sberbank CIB to OAO Belaruskali is now four years. The first tranche of the loan was paid out on 9 October 2013, specified Sberbank CIB.

“The deal with Belaruskali has been implemented in conditions of the current uncertainty on the global potash market. It indicates the interest of Sberbank of Russia in stronger partnership relations in this industry,” noted Alexei Grenkov, Managing Director of the International Clients Office of the Investment and Banking Operations Department of Sberbank CIB.

The Soligorsk-based public joint-stock company OAO Belaruskali is one of the world’s top manufacturers of potash fertilizers. The company’s share in the global export is close to 16%. Belaruskali products are shipped to over 80 countries across the globe. The company develops the Starobinskoye potash salts deposit, which is one of the world’s largest deposits and the CIS’ second largest one. The state owns 100% of OAO Belaruskali’s shares.

The Corporate Investment Banking (Sberbank CIB) was established as part of the integration of Sberbank of Russia and the company Troika Dialogue. Sberbank CIB’s key business areas include corporate loans (including trade finance), documentary credit operations, investment banking services, trading in securities, proprietary investments.