Uralkali Borrows $1 Billion at Lower Rate to Refinance Debt
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OAO Uralkali, the world’s largest producer of potash, agreed to borrow $1 billion for five years from banks led by UniCredit SpA and ING Groep NV to cut financing costs.
The loan, with a rate of 180 basis points over the London interbank offered rate, will go toward refinancing an earlier OAO Sberbank loan that Silvinit, now a unit of Uralkali, took to fund the development of the Polovodovsky potash deposit. The Sberbank loan was for 45 billion rubles ($1.5 billion) at 8.9 percent including bank fees, according to a company report.