Russian fertilizer producer EuroChem has agreed with its shareholders on a $1 billion perpetual loan with a possible expansion to $1.5 billion to balance its covenant debt, a representative of the company reported.
“This is a contribution into the capital, through providing a ‘perpetual loan’. The sum is $1 billion and can be raised to $1.5 billion”, he said.
“We hope that we will not use it in full. This is support in case the conditions are worse than now. This is a kind of insurance, the shareholder is showing support to the company in a moment, when it is necessary to finish investment projects”, he said.
Once the company approaches a debt/EBITDA ratio of 3, it will use this instrument to reduce the debt, the representative said. (Prime/Business World Magazine)
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