OREANDA-NEWS Mechel PAO (MOEX: MTLR; NYSE: MTL) reports about signing agreement with Vnesheconombank on a loan to Elgaugol OOO for a total of up to 190 million US dollars in order to refinance its obligations to Vnesheconombank, said minexforum.com press-service.

Vnesheconombank and Elgaugol OOO which is part of Mechel Group’s mining division, signed a loan agreement on financing for a sum of up to 190 million dollars. These funds will be used to repay the company’s current debt to the bank, which will extend the debt’s maturity until the second quarter of 2022. About two thirds of the loan will be repaid by the borrower according to an agreed schedule and one third — depending on Elgaugol OOO’s financial results during or at the end of the loan agreement period. The loan’s security as set forth in earlier loan agreements remains unchanged.

Vnesheconombank’s First Deputy Chairman – Member of the Board Dmitry Kurdyukov noted: “Regarding the Elga project, and taking into account its importance for the industry’s development, as well as to ensure the return of funds loaned earlier, the bank decided to restructure the debt and extended the maturity of debt obligations.”