Russia's VTB bank to open Fesco credit line of up to $680 mln

07 November Reuters
Russian transportation group Fesco said on Tuesday it had opened a credit line of up to $680 million with the country's second-biggest lender VTB bank.

As security, the state-owned bank will receive a 73.74 percent stake in Fesco and shares in some of its other assets, including 50 percent minus one share in Summa Group's United Grain Company, Fesco subsidiary Vladivostok Commercial Port said in separate statement.

Fesco said that the credit line will help the group to restructure its debts.

In September, Fesco reached a deal to restructure its notes due in 2018 and 2020, agreeing to a one-time cash payment of $547.5 million.

The transport firm has been hit by a slowdown in the Russian economy due to slump in oil prices and Western sanctions. Its gross debt totalled $885 million at the end of August.

Summa Group's owner, Russian billionaire Ziyavudin Magomedov, and his partners currently control nearly 74 percent of Fesco.

Summa said it was interested in taking control in United Grain Company, Russia's biggest grain trader, which is slated for privatisation in 2017-2020.

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