FESCO Transportation Group (“FESCO”, the “Group”) has informed about the conclusion of a credit agreement with VTB Bank (PJSC) (the “Bank”) for the amount of 25.8 billion rubles (323 million USD) for refinancing the current obligations of the Group.
The received funds are directed to repay the main part of the current financial debt in the amount of 376 million USD owed to the Bank as of 1 April 2021.
As the result of the transaction, FESCO has negotiated the improvement of the debt service terms: decrease of the interest rates, changes in the currency composition of the debt that will ensure the natural hedging of foreign exchange risks, extension of the maturity dates for the principal debt repayment and reduction of the amount of quarterly payment. Such changes became possible by significantly improving the Group's financial performance over the past three years.
FESCO is planning to continue cooperating with VTB, especially with regard to attracting additional funds for new projects.
“We want to thank VTB Bank for the effective work, the result of which is the refinancing of the Group’s debt. Our financial situation will be even more stable, and this will enable us to direct a good deal of funds not only towards the current operating activity but also towards the implementation of investment projects.” – said Arkady Korostelev, President of FESCO.