ICBC contributes to debt restructuring — via grace and maturity extensions — of a $1 billion syndicated pre-export loan to Mechel OAO for unspecified purposes (Linked to Project ID#98626)

In December 2012, a syndicate of 11 banks — including ICBC (London) plc — signed a $1 billion USD syndicated pre-export facility with Yakutugol Holding Company OAO and Southern Kuzbass Coal Company OAO — the chief mining division enterprises of Russian mining and metal company Mechel OAO — for unspecified purposes. This loan carried a maturity period of approximately 2.666 years, a final maturity date in August 2015, a grace period of 12 months, and had equal monthly repayment installments due. Mechel or its subsidiaries provided security for this loan. This loan was an amendment and restatement agreement of a September 2010 pre-export syndicated loan to Mechel operating subsidiaries, although ICBC (London) and some other lenders did not participate in the loan. The loan was expected to improve the liquidity of Mechel. Project ID#98626 captures ICBC (London)'s contribution. In addition to ICBC (London), the following lenders contributed to the loan syndicate: ING Bank N.V., Société Générale S.A. (SocGen) UniCredit AG, BNP Paribas S.A., ABN AMRO Bank N.V., Commerzbank Aktiengesellschaft, Raiffeisen Bank International AG, VTB Bank, Natixis, and Caterpillar Financial Services Corporation. ING Bank, SocGen, UniCredit, ABN Amro, and Rosbank (non-lender) served as coordinators. Then, in November 2013, a syndicate of at least eight banks — including ICBC (London) plc — signed an amendment agreement with Yakutugol Holding Company OAO and Southern Kuzbass Coal Company OAO for the $1 billion USD pre-export loan. In this agreement, the syndicate extended the grace period to the end of 2014 — an extension by one year for a new grace period of two years — and the maturity period to the end of 2016 — an extension by approximately 0.333 for a new maturity period of three years — and offered a covenant holiday amidst difficult market circumstances, moving $600 million USD of repayments from 2013/14 to 2015/16. Project ID#98627 captures ICBC (London)'s contribution. In addition to ICBC, the agreement included the following syndicate: ING Bank, SocGen, UniCredit, Commerzbank Aktiengesellschaft, Raiffeissen Bank International AG, VTB, and Caterpillar Financial Services Corporation. ING Bank, SocGen, and VTB Capital served as coordinators.

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