The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved the allocation of $ 100 million loan to the FESCO transport group. The loan, the FESCO press-service said, is a part of the program for financial management and debt restructuring of the company. The credit is valid for 5 years and will have a floating interest rate tied to a number of financial covenants, with a base LIBOR + 4%, the FESCO said.
The involvement of the loan will not increase the debt burden, as the funds will be used to refinance a short-term debt, which will significantly improve the structure of balance and repayment schedule.
"The successful involvement of the EBRD loan, Sergey Generalov, President of FESCO is quoted as saying, offers our group a number of new opportunities for work in capital markets, both debt and equity."
The EBRD loan is part of the overall program of the Group, targeted at reducing the debt burden and optimization of the repayment schedule. Implementation of the program in 2009 has already helped to reduce debt by $ 300 million, with $ 1 billion 155 million in January to $ 850 million to date. Further steps according to the program, will allow reducing the debt in 2010 for another $ 300 million, Mr.Generalov said.
Transport Group FESCO is Russia's integrated transport and logistics company that provides clients a full range of services for cargo delivery "from door to door", using the capacities of their own companies. Since August 2008 the European Bank for Reconstruction and Development (EBRD) has become one of the shareholders of FESCO with 3,74% of shares.
The involvement of the loan will not increase the debt burden, as the funds will be used to refinance a short-term debt, which will significantly improve the structure of balance and repayment schedule.
"The successful involvement of the EBRD loan, Sergey Generalov, President of FESCO is quoted as saying, offers our group a number of new opportunities for work in capital markets, both debt and equity."
The EBRD loan is part of the overall program of the Group, targeted at reducing the debt burden and optimization of the repayment schedule. Implementation of the program in 2009 has already helped to reduce debt by $ 300 million, with $ 1 billion 155 million in January to $ 850 million to date. Further steps according to the program, will allow reducing the debt in 2010 for another $ 300 million, Mr.Generalov said.
Transport Group FESCO is Russia's integrated transport and logistics company that provides clients a full range of services for cargo delivery "from door to door", using the capacities of their own companies. Since August 2008 the European Bank for Reconstruction and Development (EBRD) has become one of the shareholders of FESCO with 3,74% of shares.