February 25, 2009, Moscow– The Savings Bank of Russia ("Sberbank") (RTS: SBER, MICEX: SBER03) and OJSC MMK (MICEX, RTS: MAGN; LSE: MMK) signed an agreement on opening a RUB 12 bn, 3-year non-revolving credit line.
The facility's purpose is to finance OJSC MMK's 5,000 mm Plate Mill Project, which, once completed, will produce large-gauge plate steel for pipe makers and ship, bridge and boiler builders. The new, state-of-the-art mill is expected to turn out ab. 1.5 m tpy of premium quality plate able to compete with similar products on the domestic and international markets, and will enhance the overall performance of MMK. The loan comes in the wake of the first, RUB 3 bn, 2 year loan extended by Sberbank last December for the same purpose.
Sberbank, in its turn, views the credit line to MMK as another step in providing efficient support to Russia's systemic enterprises.