Kazkommertsbank JSC (Kazakhstan) arranged $30 m syndicated loan for Western Siberian Metallurgical Plant (Russia)

/IRBIS, Assel Omarova, April 7, 04/ - Kazakommertsbank JSC (Almaty), whose securities are listed under "A" category of Kazakhstan Stock Exchange Inc., released an announcement saying that Bank would arrange a syndicated loan for EurasHolding, the Group of Russian companies, to be signed on April 7. Loan amount is $30 million; proceeds are used to finance a program on modernization of Western Siberian metallurgical plant (ZSMK). Russian Moskommertsbank, the Bank's strategic partner, was appointed to act as co-organizer and credit agent of the loan. Loan agreement was signed for 6 years with two-year exemption period. Lenders' claims are secured by both guarantees issued by Group's members and equipment of ZSMK pledged for these purposes. According to announcement, the loan is aimed to cover a portion of local expenditures associated with the project on full conversion of ZSMK's operations into uninterrupted steel teeming, which requires installation of slab and three grading machines for continuous casting of CC machine stock. Laying of the foundation of CC slab machine financed by Kazkommertsbank took place on March 4, 2004 in Novokuznetsk, Kemerevo region. Commenting on results, Alexandr Frolov, senior vice president and CFO of EurasHolding, told such an agreement is unique since it's terms and security are comparable to those of foreign credit exporting agencies, which always promote the export of goods made in their homelands. It is a second largest syndicated loan ever arranged by Kazkommertsbank JSC after successful arrangement of pre-export $85 million finance for State Food Corporation in December 2003. "EurasHolding is the major Russian steel producer, rated at "B1" by Moody's. The Group borrows mainly through issuance of eurobonds and syndicated loans typically organized by western banks. Due to this fact, the success of a loan agreement arranged by Kazkommertsbank is an indicator of Kazakhstani strong banking sector, as well as an ultimate outcome of country-level integration", the statement says. Mining and metallurgical EurasHolding is one of the twenty largest Russian companies and occupies 16th place in the list of world's iron industry giants. EurasHolding is responsible for the Group's strategy and business policy formulation and manages its key strategic business units: Nizhnetagilsk, Western Siberian and Novokuznetsk metallurgical plants, producing nearly 13.8 m tones of steel annually. Sales revenues for 6 month of 2003 accounted for in compliance with International Accounting Standards (IAS) totaled $1.37 bn; earnings before interest, depreciation, taxes and amortization (EBIDTA) totaled $396 m. Founded in 1990 Kazkommertsbank is the largest private bank in Kazakhstan, with total assets exceeding KZT434.2 bn ($3,011 bn) and shareholders' equity equal to KZT45.6 bn ($316 mn) at the end of 2003. [2004-04-07]