OJSC Poltava ore-mining and dressing mill in Poltava region, which is the core asset of London-listed Ferrexpo plc, has borrowed $29.9 million from Private Export Funding Corporation (PEFCO) to acquire Caterpillar trucks.
The loan was provided for seven years, until March 15, 2019, against a
US Ex-Im guarantee, reads a press release by the Sayenko Kharenko law
firm, which was a legal advisor on the deal.
The loan is additionally secured by the trucks taken as collateral
and the guarantee from parent company Ferrexpo AG, reads the document.
As was earlier reported, the Poltava mill in 2011 borrowed a
seven-year loan worth $18.8 million from the U.S. Ex-Im to buy 14
Caterpillar trucks. The financing is part of a project to extend the
life of an ore field, which was approved by the Board of Ferrexpo’s
Directors in November 2010.
London-listed Ferrexpo plc owns 100% of Ferrexpo AG, which owns 97.31% of the Poltava mill.
Ferrexpo is the FSU’s biggest iron ore pellet producer and exporter.
The company’s main consumers are steelmakers in Austria, Serbia,
Slovakia, the Czech Republic and other European countries, as well as
China, India, Japan and other Asian countries.
Ferrexpo’s net profit in 2011 grew by 35.2%, to $574.9 million, while revenues rose by 38.1%, to $1.788 billion.
Private Export Funding Corporation (PEFCO) assists the financing of
U.S. exports by supplementing the financing available from commercial
banks and other lenders. PEFCO provides a broad range of export finance
programs as a direct lender and as a secondary market buyer of export
loans originated by other lenders (PEFCO does not buy loans directly
from exporters).
