Amendment of existing loan agreements
EVRAZ plc ("EVRAZ", the "Company" and together with its subsidiaries, the "EVRAZ Group") announces today that CJSC "MMC "Timir" ("Timir"), the EVRAZ Group's 51 per cent. owned subsidiary, has signed certain amendments to its existing loan agreements with AK ALROSA PAO ("ALROSA") (the "Transaction").
Transaction highlights
In April 2013, EVRAZ acquired a 51 per cent. ownership interest in Timir from Alrosa. Alrosa retained the remaining 49 per cent. of Timir, a joint venture created for the purpose of developing iron ore deposits in the southern part of the Yakutia region in Russia.
In May 2010 and February 2011, Timir entered into two loan agreements with Alrosa (the "Loan Agreements"), worth 284 million roubles and 2,008 million roubles, respectively.
On 05 March 2018, Timir executed documents effecting the following amendments to the existing Loan Agreements with Alrosa:
· the term of the Loan Agreements has been extended by two years to 25 December 2019; and
· the interest rate applicable to the amounts outstanding under the Loan Agreements will be reduced from 0.5 per cent. to 0 per cent.
All other terms of the existing Loan Agreements remain unchanged.
Pursuant to UK Listing Authority ("UKLA") Listing Rule 11.1.4R, Alrosa is classified as a related party of EVRAZ, due to its substantial shareholding in Company's subsidiary, Timir. The Transaction, therefore, constitutes a smaller related party transaction as defined under UKLA Listing Rule 11.1.10R and EVRAZ has accordingly obtained a written confirmation from a sponsor that the terms of the transaction are fair and reasonable as far as shareholders of EVRAZ are concerned.
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