OREANDA-NEWS. August 5, 2010. EuroChem signed a EUR 36.7m, 13-year Export Credit Agency (ECA) backed loan facility for financing the purchase and installation of hoisting equipment for the skip and cage shafts at its Gremyachinskoe potash deposit delivered by the Czech company INCO engineering. The loan benefits from the cover for both political and commercial risks by EGAP, the official Czech ECA. The interest rate is 1.95% per annum over 6-month EURIBOR

Commerzbank AG and ING Bank N.V. acted as the mandated lead arrangers. ING is acting as the EGAP and facility agent for the financing whereas Commerzbank is acting as the payment agent and passport bank.

EuroChem CFO Andrey Ilyin said: “EuroChem has successfully secured further long term financing for its strategically-important potash project. Together with ECA-backed financing received in March 2010 for construction of the cage shaft, this facility marks yet another important step toward securing EuroChem’s entrance into the potash market.”

EuroChem Head of Corporate Finance Alexander Gavrilov said: “We are very pleased to secure our second ECA-backed facility, which has enabled us to finance key parts of the development of our Gremyachinskoye potash project at attractive rates and tenors. Similar to the South African ECIC facility signed four months ago, our debt load will only increase as we draw down funds.”