Uzbekistan’s ferrous metals plant Uzmetkombinat has raised a $100mn credit line from Citibank, Spot has reported, with reference to the company's press office.
The loan agreement with the London branch of Citibank NA was signed on August 4 for a period of one year.
The funds, provided without guarantees or collateral, are to be used to finance working capital. Uzmetkombinat also plans to refinance its current loan portfolio in order to reduce the average cost of borrowed funds and loan servicing costs.
At a press conference held at the beginning of last week, financial director of Uzmetkombinat Tatiana Budey commented on the rate of growth of the company's debt. She stated that she did not consider the current level of debt a cause for concern.
According to Budey, the main part of the plant's loan portfolio consists of loans from foreign banks at comfortable rates. Payments on loans taken out for the construction of a new foundry and rolling complex will begin only after its launch in 2026.
In May of this year, Uzmetkombinat registered an additional share issue worth $175mn. The capital raised was to finance an investment programme aimed at doubling the production capacity of the plant.
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