EBRD lends $436 mln to Russia's Severstal
MOSCOW, Dec 17 (Reuters) - The European Bank for Reconstruction and Development (EBRD) will lend 300 million euros ($436 million) to Russian steel major Severstal (CHMF.MM) to fund an energy saving programme, they said on Monday.
The loan, under an agreement signed on Monday, will be granted in two equal tranches. EBRD will provide the first one of 150 million euros for 10 years. The other 150 million euros will be syndicated and granted for seven years.
Severstal's Deputy General Director Mikhail Noskov told reporters the first tranche will be granted at a rate of Euribor EURIBOR= plus 160 basis points.
The other tranche will be provided at Euribor plus 140 basis points for the first five years and Euribor plus 160 basis points for the remaining two years.
ING, Calyon and Raiffeisen, the lead arrangers of the syndicated part of the loan, have an option to syndicate another loan of 200 million euros next year.
The loan would help Severstal cut primary energy consumption by 5 to 10 percent and to reduce CO2 emissions by 900,000 tonnes per year. Severstal accounts for 16 percent of Russia's steel production. (Reporting by Dmitry Sergeyev; Writing by Aleksandras Budrys; Editing by David Holmes)
