Institutions keen to lend to Ferrexpo

28th Sep 2010 07:57

Ukrainian iron ore producer Ferrexpo has secured a new debt facility, with leading institutions falling over themselves to lend it money.The pre-exporting financing facility is for $350m and matures at the end of March 2014. It will be amortised over 24 months following an 18 month grace period, the company said.Initially the company had planned to borrow $300m, but "this was significantly oversubscribed" said Chris Mawe, chief financial officer of Ferrexpo . "The group remains strongly cash generative and this financing, in addition to our growing cash balance, provides the company with the financial flexibility to progress with key expansion projects," Mawe added.