Russian group Mechel will take two loans worth EUR 50 M each from the Bucharest branch of ING Bank and from UniCredit Tiriac Bank, in view of financing its current operations, Money.ro reports. The loans will be guaranteed with all the money present in the accounts of Mechel Targoviste and 20 pc of the claims and stocks of the former steel mill.
Mechel Targoviste contracted the loans jointly with the Mechel Campia Turzii steel mill and the companies Ductil Steel Buzau and Laminorul Braila, reads a report sent to the Bucharest Stock Exchange; it summoned the shareholders of the Targoviste steel mill to approve the loans on July 22. Besides “financing the working capital,” the money will also serve to “issue potential commitments,” which could mean possible acquisitions. Mechel Targoviste also guarantees the loans with the cession towards ING of the benefits it will receive from the insurance policies “over the stocks of end products, semi-processed products, raw materials and production under way, provided as guarantee to the bank.”