MMK repays debt of MMK Metalurji in full
OJSC Magnitogorsk Iron and Steel Works ("MMK" or "the Company") announces that it has repaid in full and ahead of schedule investment loans it raised to fund construction of its steel plant in Turkey. As a result, MMK Group’s total debt was reduced by USD 403 million.
The decision to repay the outstanding debt of the project in full was taken as part of the Group’s programme to reduce total debt. This transaction will significantly improve the Group’s balance sheet (because the debts were secured loans) and reduce future interest payments.
MMK Group raised more than USD 1 billion in loans due in 2019 to fund construction of a plant in Turkey, which it launched in 2007.
Currently, MMK Group benefits from a low debt level, which is also reflected in its strong credit ratings and supports the Company’s financial strength in the current market environment.
Notes for editors:
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2015, the company produced 12.2 million tonnes of crude steel and 11.2 million tonnes of commercial steel products. MMK Group had sales in 2015 of USD 5,839 million and EBITDA of USD 1,668 million.
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