Petropavlovsk Reduces Guarantee Regarding Loan to IRC
December 19 2018 - 3:49AM
Dow Jones News
By Oliver Griffin
Petropavlovsk PLC (POG.LN) has reduced its guarantee regarding a
loan held by IRC Ltd. (1029.HK) after restructuring the Hong
Kong-listed company's debt with Industrial & Commercial Bank of
China Ltd. (1398.HK).
The mining company, which has operations in Russia, served as
the guarantor for a loan granted by the Chinese bank to IRC, in
which Petropavlovsk owns a 31% stake.
Petropavlovsk in October said it secured a new loan with a
Russian bank worth $240 million. On Wednesday, the mining company
confirmed Gazprombank (GZPR.RS) will supply the loan to LLC
Kimkano-Sutarsky Mining and Beneficiation Plant, a wholly owned
subsidiary of IRC.
Following a scheduled repayment by Kimkano-Sutarsky on Dec. 20
in connection with the ICBC Facility, the total amount outstanding
will be around $169 million. This is expected to be repaid in full
using the new facility.
As a result of the refinancing, Petropavlovsk said its current
guarantee in regards to IRC's loan will initially fall from $204
million to $160 million.
The company said it will provide IRC with a further bridging
loan worth $27 million at an interest rate of 16% a year. Taken
with an existing bridging loan, IRC will owe $57 million to
Petropavlovsk.
IRC will also pay the guarantee fee of approximately $6 million
it owes to Petropavlovsk.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
December 19, 2018 03:34 ET (08:34 GMT)
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