Kazakhmys secures replacement pre-export finance debt facility

Natural resource group Kazakhmys has secured a one billion dollar pre-export finance debt facility, replacing an existing 2.1bn facility which is due to mature in February 2013.

The new five-year debt facility and will provide additional liquidity during the development of copper projects at Bozshakol and Aktogay. It is to be used for general corporate purposes.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The interest rate is at US$ LIBOR plus a margin of 2.80%.

The lenders in the transaction are Bank of China, Bank of Tokyo-Mitsubishi UFJ, Deutsche Bank AG, ICBC (London and Almaty), ING Bank, Natixis, Socit Gnrale, Sumitomo Mitsui Banking Corporation and UniCredit as the mandated lead arrangers and Bank of America Merrill Lynch, Citibank, Crdit Agricole CIB, JP Morgan and The Royal Bank of Scotland as arrangers. The agent is Deutsche Bank AG and the security trustee is ING Bank.

Matthew Hird, Chief Financial Officer of Kazakhmys, stated: "We are delighted to have completed this replacement debt facility and the competitive pricing reflects the strength of our business. The facility will provide financial flexibility as we invest in our major expansion projects during the next three years and is a helpful addition to our project specific loans."

Kazakhmys is based in Kazakhstan and is focused on copper production. Its share price was down 1.70% to 753.50p at 09:51 on Friday morning.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.