Kazakhmys secures replacement pre-export finance debt facility



LONDON (ShareCast) - Natural resource group Kazakhmys (LSE: KAZ.L - news) 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.

The facility has a one year availability period and principal repayments will then amortise over a three year period commencing from January 2015 until final maturity in December 2017.

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 (Xetra: 514000 - news) , ICBC (London and Almaty), ING Bank, Natixis (Paris: FR0000120685 - news) , Société Générale, Sumitomo Mitsui Banking Corporation and UniCredit (Milan: UCG.MI - news) as the mandated lead arrangers and Bank of America Merrill Lynch, Citibank, Crédit Agricole CIB, JP Morgan and The Royal Bank of Scotland (NYSE: RBS - news) 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.