Russia's Mechel $1 bln Gazprombank facility extended

MOSCOW, March 4 (Reuters) - Russian steel and coking coal producer Mechel (MTL.N) said on Thursday its $1 billion credit facility with Gazprombank had been extended to six years from three years, with a reduced interest rate.

Mechel will begin repayment of the facility, which was used to finance operations and pay down short-term debt, in three years time.

A source told Reuters last month that both parties were close to signing an agreement to extend the facility. [ID:nLDE61A0CP]

Gazprombank is part of energy giant Gazprom's (GAZP.MM) business empire. (Reporting by Alfred Kueppers; Editing by Jon Loades-Carter)