Cherkizovo Repays EBRD Credit Ahead of Schedule The CHERKIZOVO group announced that it had repaid a six-year, $62-million credit provided by the EBRD.
The company has refinanced the debt by placing R2.0b bond loan. The EBRD provided its credit to CHERKIZOVO in 2004. The company decided to secure itself against currency risks. In addition, the LIBOR rate set on the credit has been increasing lately. The coupon rate on bonds was one of the lowest rates in the food sector, at 8.85%.
Western bank credits are no longer the cheapest borrowings and the bond loan may be more profitable for the company, analysts believe.
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