Agreement to help for URALCHEM to implement its investment program bySberbank
In 2019, an agreement was put in place to help URALCHEM improve the companys loan portfolio by helping them structure and empower the company. The plan was aimed at helping the company implement its investment program which was a long-term growth and expansion strategy and it showed that the company was headed in the right direction. This is a clear indicator of stakeholder trust in the company which is vital for expansion and its benefits cannot be underestimated. Such agreements, between URALCHEM and Sberbank are welcome and are a sign of progress and good times ahead in with global economic growth projected to slow down in the coming years.
On 24th December 2019 in Moscow, Sberbank signed a long-term agreement with Russian based, URALCHEM JSC. The agreement details included offering a sum of USD 3.9 Billion in funding. This move was made to help improve the structure of the companys loan portfolio. This was done to help URALCHEM JSC streamline its repayment terms while also empowering the company to implement their investment program to give the company an edge when it came to program funding.
The deal is structured in such a manner that under Russian law, it is a syndicated loan in line with the Russian LMA documentation forms.
A high-level member of the Sberbank, The First Deputy Chairman of the Executive Board at Sberbank, Alexander Vedyakhin, shared his take on the agreement. He stated that due to the signed agreement between URALCHEM JSC and Sberbank, they would now be in a position to reach a higher level of bilateral cooperation. In addition to traditional banking, both parties would be able to focus on solutions geared towards the use of Data Science that would allow them to streamline processes and improve cyber security systems. Other projects they would undertake include managing risk using Artificial Intelligence while running other projects where the Sberbank platform element would be highly beneficial to URALCHEM.
The Chairman of the Board of Directors, Dmitry Mazepin, also shared his take about the agreement between URALCHEM JSC and Sberbank. He stated that URALCHEM was executing its strategy that was approved through to 2025 aimed at transitioning active growth in a number of key areas. These areas included broadening of distribution markets, manufacturing upgrades and optimizing logistics. Other areas they hoped to invest in included tailoring new products and being able to attain platform solutions that were not only focused in the direct production of fertilizer. One such initiative was Digital Agro.
The 2025 growth plan needed the current financial structures to be actualized for the companys goals to be met. He stated that in the year 2019, URALCHEM JSC was able to expand their long-standing partnership with Sberbank. He mentioned that the bank was able to efficiently implement deals of a highly complex nature. He also mentioned that the bank was also best placed to support in the adoption of innovative digital solutions. He placed confidence that this was because they understood URALCHEMs goals and ambitions.