Baker & McKenzie successfully advised Uralchem Group, the leading Russian fertilizer maker, on a debut USD220 million 5-year multi-currency syndicated pre-export loan facility arranged by ING Bank, Raiffeisenbank, Sberbank and VTB Capital as mandated lead arrangers and with HSBC Bank and Rosbank as lead arrangers. The loan was structured as a classic pre-export finance facility backed by deliveries of export-grade fertilizers and other export-grade commodities.
Exercising a multi-currency option embedded in the loan documentation, the facility was funded in euros on 21 December 2012 and will be used to refinance existing indebtedness of the Group. The proceeds of the loan will allow for an extension of the Group’s debt profile as well as the release of existing security.
“This was a debut syndication for Uralchem and we are very pleased to have helped the client access international money markets for the first time,” commented head of the Russian finance and capital markets practice Vladimir Dragunov, who led the Baker & McKenzie transaction team, which also included partner Simon H.P. Morgan, and associates Andrey Lebedev and Maxim Khrapov.
Uralchem Group is the second largest ammonium nitrate producer in the world and number one in Russia and the second largest nitrogen fertilizer producer in Russia.
