Media Center

25.08.2005

Sinara Trading and Moscow Narodny Bank sign a US$25,000,000 medium term financing

The signing took place today in Zurich of the US$25,000,000 medium term secured loan for Sinara Trading, arranged by Moscow Narodny Bank Limited (MNB). Sinara Trading is the major export trading arm of the TMK, the largest Russian producer of pipes principally for the oil and gas industries and the 2nd largest pipe producer in the world. The core business of Sinara Trading is the distribution of pipes and steel billets produced by the mills of the TMK.

The facility is secured by assignment over commercial sale contracts with end-buyers of pipes and steel billets produced by Seversky Tube Works, one of the main production companies of the TMK. The Facility is also secured by the surety of Seversky. The proceeds of the Facility will be used to finance working capital of the Borrower.

The financing, which has a tenor of 24 months, is fully underwritten by MNB. It is expected that disbursement of the facility will take place shortly, after which MNB will launch syndication.

MNB will act as the Facility Agent and Security Agent for the transaction. White & Case acted as legal counsel to MNB.

Mr. Vasily Makarov, President of Sinara Trading said “ We’ve already have experience for mutual beneficial co-operation with MNB, participating in US$ 50,000.000 Medium-Term Finance Facility as the Guarantor and Assignor of Security assets under End Buyer Contracts. In view of increase of sales of “Sinara Trading AG” as exclusive trader for export of producing plants of TMK in 2005 we are looking forward for new projects with MNB on pre-export financing of the Company, as the Borrower for general working capital purposes.”

Mr. David Taylor, Head of Structured Finance at MNB said “\"We are delighted to have arranged this financing for Sinara Trading, with whom we have developed an excellent working relationship. We are also pleased to be able to support the continued development of the companies of TMK.”