Siberian Coal Energy Company (SUEK) has secured a long-term loan of USD200 m backed up by the guarantee of the Japanese Nippon Export and Investment Insurance (NEXI) company, SUEK press release said.
It's a 6 year loan with the grace period of 18 months. The funds were lent at LIBOR (3 months) + 1.30% annual interest rate. The deal was arranged by the banking houses of Citibank and Sumitomo.
SUEK is going to invest the raised funds in refinancing grand-scale investment projects, such as developing the bulker terminal at the Vanino port in the Khabarovsk Territory, enhancing the production capacity of Tugnui surface mine and Tugnui coal preparation plant in the Republic of Buryatia.
It is for the first time that NEXI provides a Russian debtor with such a guarantee affirming SUEK as a stable and lasting supplier of power-generating coals for Japanese consumers. The deal is another positive example of economic cooperation between Russia and Japan.