Russia's fertiliser major and largest global producer of potash Uralkali is seeking to raise a syndicated loan from Russian and foreign banks, Prime reports citing unnamed sources. Reportedly and RFP (request for proposal) was forwarded to banks, testing the market. In the beginning of March first parameters of the deal could be announced.
Currently the company has USD 1bn 5-year loan raised in June 2013 at LIBOR+1.15% and USD 200mn 5-year loan raised in August 2012 at LIBOR+2.5%.
Uralkali increased its potash output by 61% y/y in Q4/13 or 2.8mn tonnes. As of 2013 overall potash output increased by 9.9% y/y to 10mn tonnes. To remind, as of July 2013Uralkali shook the potash market announcing seizing cooperation on export sales through the BPC (Belarus Potash Company one of the two largest global potash traders with a 40% share), while aiming at much higher output volumes and lower prices.
Russian industrial and investment group Oneksim of tycoon and ex-presidential candidate Mikhail Prokhorov in November officially announced acquiring 21.75% of Uralkali controlled by another influential businessman Suleiman Kerimov. The replacement of Kerimov was demanded by Belarussian authorities. In December Russian fertilizer major UralChem acquired 20% in Uralkali. According to earlier reports also China Investment Corp sovereign fund acquired 12.5% in UralKali this fall.