OREANDA-NEWS. Uralkali (LSE: URKA), one of the world's largest potash producers, has signed a loan agreement amounting to USD-equivalent of EUR 171.4 million with UniCredit Bank AG and DZ Bank AG (the “Facility”).

The purpose of the Facility is financing of the construction of two vertical shafts at the Ust-Yayvinsky potash mine by the German owned engineering company Deilmann-Haniel Schachtostroj. The political and commercial risks of the Facility are covered by Euler Hermes, the official German export credit agency (“ECA”), the world's leading provider of trade and export related credit insurance.

UniCredit AG and DZ Bank AG are acting as the original lenders.

UniCredit AG is acting as Mandated Lead Arranger, ECA agent and the Facility Agent. ZAO UniCredit is acting as Passport Bank.

The interest rate is based on the 3-month LIBOR plus a margin with the maturity of 14 years, including a 4-year construction period.

Viktor Belyakov, acting Uralkali CEO, commented:

“Our first ECA-backed facility confirms the ability of the Company to raise financing from the leading European banks, while the cover of Euler Hermes demonstrates the support of Uralkali's strategy by international financial institutions. This deal further diversifies Uralkali's loan portfolio and prolongs its average maturity.”