Steel producer Mechel will get a EUR 50 million loan from Erste Group Bank AG and its subsidiary Banca Comerciala Romana (BCR), the bank has announced. The EUR 50 million represent the refinancing of some credits worth a total of EUR 35 million, to which a new financing line is added worth EUR 15 million.

The loan agreement is one of multi-borrower, multi-currency type to finance the working capital, with collaterals (stocks and receivables) as well as with a letter of guarantee issued by the mother company Mechel OAO.

“Mechel Group employs over 7,500 people in give towns of Romania and we believe it is BCR responsibility to support in this way the economic recovery,” said Diana Hudymač, Executive Director of Group Large Corporate Division within BCR.

Mechel is active on mining, steel, ferroalloy and power. It produces coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. The holding has been present in Romania since 2002 through six metallurgical units: Mechel Targoviste, Mechel Reparatii, Mechel Campia Turzii, Ductil Steel Buzau, Ductil Steel Otelu Rosu and Laminorul Braila. Mechel’s products are sold in Romania and abroad. Key destinations for export are Czech Republic, Hungary, Germany, Italy, Poland, Turkey as well as neighbor countries such as Serbia and Bulgaria.

Corina Saceanu, corina@romania-insider.com