Under an agreement signed by the parties, ChTPZ will receive the loan in two parts, 145 million euros (about $196 million) and $80 million, to be syndicated by commercial banks. The funds to be disbursed directly by the EBRD will have a maturity of nine years while the remaining part will be provided for a term of seven years, ChTPZ Group said in a statement.
The borrowed funds are intended to finance the construction of a 300 million euro ($405 million) electric furnace facility on the territory of the Pervouralsk New Pipe Plant and to restructure ChTPZ's loan portfolio, the statement said.
Based in the southern Urals, ChTPZ Group, a leading Russian metallurgical group with a 22% share on Russia's pipe market, incorporates the Chelyabinsk Pipe Rolling Plant, the Pervouralsk New Pipe Plant, the Chelyabinsk Zinc Plant, ChTPZ - Integrated Pipe Systems, engaged in pipe components production and sale, Metris metals sales company and ChTPZ-Meta ferrous scrap procurement, processing and sales company.