Bank of China participates in $820 million syndicated loan to EuroChem Group AG to help refinance its debts (linked to #98839)

On June 29, 2018, EuroChem Group AG — a Russian mineral fertilizer company — signed a $820 million unsecured finance facility with 13 leading international banks. AO Raiffeisenbank, Raiffeisen Bank International AG, AO UniCredit Bank, Bank of China Limited, Hungarian Branch, AO Citibank, China Construction Bank, Crédit Agricole Corporate and Investment Bank, ING Bank, a branch of ING-DIBA AG, Mizuho Bank, Ltd., AO Mizuho Bank (Moscow), MUFG Bank, Ltd., Nordea Bank (Publ) and Public Joint-Stock Company Rosbank acted as Mandated Lead Arrangers. AO UniCredit Bank, Crédit Agricole Corporate and Investment Bank, and ING Bank, a branch of ING-DIBA AG, acted as Bookrunners. The loan carried a 3-year maturity (final maturity date: July 2021) and a 2-year grace period. Its interest rate is unknown. The borrower was expected to use the proceeds of the loan to refinance part of its debt. As of December 31, 2019, the outstanding loan amount was $442 million. This project captures the estimated value of the contribution of Bank of China to the syndicated loan. The contribution of China Construction Bank is captured in #98839.

Additional details

1. EuroChem is a leading global producer of nitrogen, phosphate and potash fertilizers, as well as certain industrial and mining products. The Group is vertically integrated with activities spanning mining to fertilizer production, logistics, and distribution. EuroChem began potash production at its Usolskiy mine in early 2018, and continues to develop a second greenfield site at VolgaKaliy in Russia. Headquartered in Zug, Switzerland, the Group operates production facilities in Europe, Asia and the CIS, employing more than 26,000 people. 2. The outstanding loan amount as of December 31, 2019 was $442 million. 3. The size of Bank of China’s contribution to the loan syndicate is unknown. For the time being, AidData assumes equal contributions ($63,076,923) to the loan syndicate across the 13 participating banks. Therefore, AidData estimates that the value of the contribution of Bank of China to be $63,076,923. 4. The Dentons team which advised on the transaction was led by Moscow and London partner Evgenia Laurson, with support from Moscow counsel Dennis Montgomery and Moscow associate Zaur Gidalishov

Number of official sources

3

Number of total sources

5