Eurasian Resources Group signs a new agreement with Sberbank of Russia PJSC
Eurasian Resources Group (“ERG” or “the Group”), a leading diversified natural resources producer, has signed an agreement on the reduction of loan interest rates with Sberbank of Russia PJSC (“Sberbank”), one of its major lenders.
The agreement sets out a phased reduction of interest rates which will take place under certain conditions, have a positive impact on the Group and enhance its financial stability.
Benedikt Sobotka, Chief Executive Officer of ERG, commented: "This new agreement is the latest endorsement of our long-standing partnership with Sberbank. Over the last few years, ERG has done tremendous work to restructure the Group’s loans. The reduction of interest rates has been made possible by the overall improvement of the Group’s financial position, which allows us to optimise debt servicing costs and allocate funds for the implementation of promising projects."
"We have been impressed with ERG's financial results in recent years and value our collaboration with the Group," commented Yan Veytsman, Managing Director, Sberbank CIB*. "It is this appreciation that underlies the new agreement between Sberbank and ERG."
Under previous agreements between ERG and Sberbank, the loan tenor was extended until 2022 with the option of a further extension until 2025.
*The Corporate & Investment Business of Sberbank.