Hogan Lovells advised Sberbank of Russia, the largest credit institution in Russia and the CIS, as arranger of a US$2 billion term loan facility to Eurasian Natural Resources Corporation PLC (ENRC), a FTSE 100 company headquartered in London, United Kingdom.

The loan proceeds will provide additional liquidity to ENRC and will allow for the financing of its recent acquisitions and CAPEX programme. The facility has a five-year term with amortisation commencing after 24 months. 

ENRC is a leading global diversified natural resources group, with integrated mining, processing, energy, logistics and marketing operations and is also one of the world’s largest ferrochrome producers. The production assets of ENRC are largely located in Kazakhstan, its other assets are mainly located in Africa and it also has iron ore assets in Brazil. ENRC currently sells the majority of its products to Russia, China, Japan, Europe and the United States.

The Hogan Lovells team advising Sberbank was led by Alexander Rymko (partner, banking, Moscow) and Andrew Gamble (partner, banking, London), assisted by Salam Bassili (of counsel, banking, London), Ioli Tassopoulou (associate, banking, London) and Artyom Vazhenin (associate, banking, Moscow). 

Commenting on the transaction Alexander Rymko said:

“We are pleased to have had the opportunity to represent Sberbank on this important transaction, which so far tops the list of major corporate loan financings in 2012 and illustrates Sberbank’s expertise in arranging major international financings. The transaction further strengthens our relationship with Sberbank and is a great result of the Hogan Lovells international banking team’s efforts.”