Russian mining and metals firm Mechel said state-owned VTB Bank has agreed to extend a loan worth $462m by three years until 2015.
Russian mining and metals firm Mechel said state-owned VTB Bank has agreed to extend a loan worth $462m by three years until 2015.
Subsidiaries of Mechel Mining, which is part of Mechel Group have signed the deal.
Mechel chief financial officer Stanislav Ploschenko said VTB Bank is a longstanding strategic partner for Mechel Group, and signing these agreements is additional proof of our successful partnership.
"These accords will enable us to optimize the Group’s credit portfolio structure by significantly decreasing the share of short-term loans, which is particularly important in light of significant volatility in the financial market," Stanislav added.
The credit facilities will be used to finance operations at the company, which saw total debt of $9.5bn at the end of the third quarter.
In late 2008, VTB Bank opened credit lines for $462m for subsidiaries of Mechel Mining which were later extended until 2012.