GeoProMining raises US$250,000,000 syndicated club term loan facility

Posted on Mar 25, 2013 in Company news, News and Press releases

GeoProMining raises US$250,000,000 syndicated club term loan facility

25 March 2013, Moscow

Русский 

GeoProMining (“GPM”) has raised a debut 5-year USD 250,000,000 Term Loan Facility via a club of banks. The financing was arranged by Raiffeisen Bank International AG (“RBI AG”) and ZAO Raiffeisenbank (“RBRU”) (together “RBI Group”), Sberbank of Russia (acting through its Sberbank CIB and Sberbank Switzerland A.G., “Sberbank“) and ZAO UniCredit Bank and UniCredit Bank AG, London (“UniCredit Bank”) (jointly “Mandated Lead Arrangers”). UniCredit Bank AG, London acted as Facility and Security Agent for the facility, Sberbank of Russia acted as Local Security Agent.

GPM has secured long-term financing through its Dutch holding company Karlou B.V. (the Netherlands) (acting as the Borrower) with a recourse to GPM’s Russian and Armenian key operating subsidiaries. The loan was split in two tranches according to the purposes of financing: the proceeds of Tranche A will be routed towards repayment of existing GPM’s indebtedness, whereas Tranche B funds will be used for general corporate purposes and CapEx. Both tranches carry similar 5-year tenor.

Classic term loan structure of the financing was fine tuned with a pre-export finance component – the loan is backed by deliveries of gold as one of the main commodities developed by GPM. Signed on 19th March 2013 the facility was promptly funded.

“We are pleased with the results of the facility. Thanks to our partners Sberbank, Raiffeisenbank and UniCredit Bank we balanced the structure of the deal and its term conditions are attractive. While choosing the banks for our syndicated club term loan facility we have focused on strong balance sheets, credible international reputation and diversity of the product range. The geographic presence of the banks has also been a key factor: we are interested in the strong positions in Russia and countries of the CIS and Europe,” said GPM President Roman Khudoliy.

“We aimed at creating a solid platform for long-term relations with the banks, which we plan to expand in the course of our strategic development. It includes both organic growth and M&A in the regions, which are of particular interest for us, e.g. South-East Asia. Moreover, GeoProMining will analyze possibilities of the debt and equity markets,” he added.

“Despite our decision to expand our bank list we have retained close relationships with VTB Bank GeoProMining has a long-term partnership with. And we plan to continue our cooperation primarily in Armenia where VTB has a key role in the banking sector.

“This March we have accomplished several strategic objectives: while signing the loan facility we also closed a hedge deal for 270,000 ounces of gold, which is part of our financial hedging strategy.”

CMS Cameron McKenna LLP (“CMS”) acted as legal advisors on behalf of the lenders and Allen & Overy Legal Services (“A&O”) acted as legal advisors on behalf of the company.

Press contacts:

Elena Shuliveystrova

Tel: +7495 232 61 20

Email: e.shuliveystrova@geopromining.com

 

About GPM:

GPM is an international, diversified metals resource holding company with three operating assets in two resource-rich countries. Its strategy aims to build on existing operations, taking advantage of significant opportunities for growth through brown field expansion, green field exploration, new mine development and resource expansion.