“The loan agreement is one of multi-borrower, multi-currency type to finance the working capital, with collaterals (stocks and receivables) as well as with a letter of guarantee issued by the mother company Mechel OAO. The EUR50 million represent the refinancing of some credits worth a total of EUR35 million, to which a new financing line is added worth EUR15 million,” BCR said in a news release Wednesday.
The funds will be used by Mechel Campia Turzii (INSI.RO), Mechel Targoviste (COS.RO), Ductil Steel and Laminorul (LMRU.RO), all owned by the Russian group. Other Mechel operations in Romania include Mechel Reparatii and Ductil Steel Otelu Rosu.
The Mechel group has been active on the Romanian steel market since 2002, and it has some 7,000 employees locally.