Chelyabinskiy truboprokatnyi zavod : ChelPipe Group signed a syndicated loan facility with a syndicate of international banks

Public Joint Stock Company Chelyabinsk Pipe plant (ChelPipe), the leading Russian manufacturer of tubular goods and the provider of integrated solutions for fuel and energy companies, announces the signing of a EUR 150,000,000 (or USD equivalent) syndicated facility agreement (the 'Facility').

The deal was closed as a four-year unsecured facility by a syndicate of international banks. AO Raiffeisenbank, 'COMMERZBANK (EURASIJA)' AO, AO UniCredit Bank, PJSC ROSBANK, Bank ICBC (JSC) and Agricultural Bank of China (Moscow) Limited acted as Mandated Lead Arrangers. AO Raiffeisenbank acted as Documentation Agent and Facility Agent for the Facility.

The financing was structured as a dual-currency term loan facility for EUR 65,000,000 and USD 35,000,000. Accordion option embedded into loan documentation allows for an increase for additional EUR 10,000,000 and USD 40,000,000 which can be provided by existing lenders as well as new participants joining during further syndication. The Facility pays a margin of 190bps over EURIBOR and 210bps over LIBOR. Pricing for accordion may differ from initial level and will be set by Chelpipe Group and lenders participating in it. The proceeds of the loan will be used for refinancing of Chelpipe Group loan portfolio.

The loan agreement is based on a standard documentation for syndicated lending under Russian law. Dentons acted as legal advisors on behalf of the Company and Moscow office of Clifford Chance LLP acted as legal advisors on behalf of the Lenders.

ChelPipe would like to thank its strategic financial partners for the support and the efficient cooperation.

'The loan documentation was signed on very comfortable terms. The deal will help increase investor sentiment about Chelpipe Group as a whole as well as further strengthen its positioning on international syndicated loans market. We hope to attract new financial partners in the future thanks to this deal,' commented Valery Borisov, ChelPipe CFO.