Mechel to take out a loan from VEB for the development of Elga deposit

Mechel is about to take out a loan at $2.5 billion for the development of the Elga deposit. VEB will provide the loan. However, at first the coal company is to get licence for the development of the deposit and its estate, which belong to “Yakutugol” at the moment. “Mechel” has created a project company “Elgaugol” in order to take out the loan from VEB. The bank is going to have 49% of shares in this company. Besides, VEB will get a right to acquire 0.01% shares of the company for symbolic 100 roubles in case the bank will transfer the securities to “Mechel” at the same price in 14 years. The creditors of “Yakutugol” are to approve the scheme at first.

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