Russia’s EuroChem agrees on $1 bln perpetual loan with owners

MOSCOW, Sep 28 (PRIME) -- Russian fertilizer producer EuroChem has agreed with its shareholders on a U.S. $1 billion perpetual loan with a possible expansion to $1.5 billion to balance its covenant debt, a representative of the company told PRIME on Wednesday.

“This is a contribution into the capital, throughproviding a ‘perpetual loan.’ The sum is $1 billion and can be raised to $1.5 billion,” he said.

“We hope that we will not use it in full. This is support in case the conditions are worse than now. This is a kind of insurance, the shareholder is showing support to the company in a moment, when it is necessary to finish investment projects,” he said.

Once the company approaches a debt/EBITDA ratio of 3, it will use this instrument to reduce the debt, the representative said.

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