Magnitogorsk Metal Works to get $100m credit

An agreement on allocating a medium-long term credit totaling $100m to the Magnitogorsk Metal Works is to be signed in Moscow today. The credit, which is organized by the Moscow Narodny Bank, is given for a three-year term and is to be paid off every month after a 12-month beneficial period, the press service of the Moscow Narodny Bank reported. The credit's funds will be used for broadening and developing production activities of the enterprise.

The Moscow Narodny Bank is to be the credit agent. Underwriters of the credit are the Moscow Narodny Bank, Societe Generale and Standard Bank London.

According to Viktor Rashnikov, the General Director of the Magnitogorsk Metal Works, the credit is evidence of the growing confidence of investors in his enterprise. Moreover, the credit will enable the company to diversify sources of financing, which is important for the company, which implements large-scale programs aimed at reconstructing and modernizing production facilities.

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