MMK and Sberbank Sign Credit Facility Agreement

30 Dec 2008 07:18



Sberbank and Magnitogorsk Iron & Steel Works Sign Credit Facility Agreement

December 30, 2008, Moscow. Chairman of the Board and CEO of Sberbank (RTS: SBER, MICEX: SBER03) Herman Gref and Chairman of the Board of Directors of OAO "Magnitogorsk Iron & Steel Works" (RTS, MICEX: MAGN; LSE: MMK) Victor Rashnikov signed a nonrenewable 2-year credit facility for RUB 3.0bn. 

The credit facility is provided to finance the construction of the plate mill complex at MMK (Plate Mill 5000) with a design capacity of 1.5 mn tons of plates per year. The plates are intended for production of pipes, building of ships, vessels and bridges. 

The implementation of the plate mill complex is bound to further significantly strengthen the general operational efficiency of MMK. It will secure state-of-the-art production of high quality plates meeting international standards and capable to successfully compete both in the domestic and export markets. 

In its turn, Sberbank considers the credit line for MMK as another major step towards effective support of Russian strategic enterprises.

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Sberbank

Irina Kibina

Public Relations Department 

+7 495 957 5721

E-mail: media@sbrf.ru

Sberbank (Savings Bank of the Russian Federation) is the largest Bank in Russia, Central and Eastern Europe, with about 30% of the total assets of the Russian banking system. It is the major banking institution extending credits to the national economy. The Central Bank of the Russian Federation is the founder and the majority shareholder of Sberbank (over 60% of the voting shares), with the rest of the shares dispersed among more than 200 thousand individuals and legal entities. The Bank has the most ramified branch network in Russia: 17 Regional Head Offices, over 20 thousand branches and banking outlets, as well as subsidiaries in Kazakhstan and Ukraine. The Bank holds the General License No. 1481, issued by the Central Bank of the Russian Federation. Official site of Sberbank: www.sberbank.ru

MMK 

Elena Azovsteva 

Press-secretary +7 3519 24 90 82 E-mail: azovtseva@mmk.ru 

Magnitogorsk Iron and Steel Works OJSC (MMK) is among the world's largest steel producers and one of the leaders of Russia's steel industry. The Company is a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of value added goods.

In 2007 the Company produced 13.3 m tonnes of crude steel, and 12.2 m tonnes of commercial products. Sales under US GAAP amounted to USD 8.2 bn, with net profit standing at USD 1.8 bn.