Monday, 6 of April of 2020

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Russia’s Severstal seeks state funds for refinancing

Severstal, Russia’s largest steel maker, is in talks with state bank VEB to refinance 75 percent of a $325 million bond due in February, 2009, Chief Financial Officer Sergei Kuznetsov said.

Kuznetsov said on Tuesday the refinancing would provide ‘an extra cushion’, and stressed his company had sufficient liquidity to re-pay the amount.

State-owned VEB, or Vnesheconombank, has been entrusted by the Kremlin with distributing a $50 billion rescue package to help Russian companies refinance a total $120 billion of Western loans by the end of 2009.

Kuznetsov also said Severstal ’s worldwide production is 50 percent below normal capacity.

Last month Severstal slashed production by 25-30 percent at plants in Russia, Italy and the United States.

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