Steppe Cement Ltd said its subsidiaries have refinanced the outstanding loans with VTB Bank (Austria) AG and VTB (France) SA (VTB) with credit facilities from Halyk Bank Kazakhstan.
The credit facilities are based on the following terms:
- USD 5.5 million due in November 2016 has been refinanced in USD at an interest rate of 6% per annum, with repayment to be made in 3 tranches: USD1.5 million in July 2017; USD2 million in July 2018; and the final USD 2 million in November 2018.
- USD 9.8 million outstanding for the purchase of 330 wagons in 2014 has been refinanced in USD at an interest rate of 6.5% per annum to be repaid in equal payments for 60 months until November 2021.
"The refinancing exercise allows Steppe Cement to spread the repayment of principals over the coming years and paves the way to pay dividends consistently once the cement market demand recovers," the company said.
"The Company is thankful to VTB for the support given over the last few years and welcomes Halyk Bank to finance its long-term financing requirements."
At 9:24am: (LON:STCM) Steppe Cement Ltd share price was +0.5p at 18.5p