Fertiliser company UralChem, which cancelled an initial public offering in April, is considering issuing Rb16bn ($515m) of eight year rouble bonds and a syndicated loan to refinance some of its $1.36bn of net debt.
"We’ve discussed the syndicated loan with a number of banks," said a UralChem spokesman. "We are still working out the
The move to issue debt comes after the unrated company, which has not tapped the loan market before, postponed a $642m listing in London in late April, amid weak conditions in equity capital markets.
UralChem had revenues of $325m in the first quarter, up 38% from the same period in 2009. Its adjusted Ebitda rose 38% to $66m. It made a net profit of $19m in the three months, having made a $118m loss a year earlier.
The company has $349m of debt maturing this year, $103m in 2011, $318m in 2012 and $372m in 2013.
Outside the commodities and financial institution sectors, activity in Russia’s loan market has been slow this year. Dixy Group, the food retailer, is thought to be the only company to have signed a deal.