Shareholders of Poltava GOK allowed to mortgage the property of the complex to attract a loan to the EU

At an extraordinary general meeting of PJSC Poltava Mining and Processing Plant (PGOK, Ferrexpo Poltava Mining, Horishnie Plavni, Poltava Region), the shareholders of the largest producer of iron ore pellets in Ukraine agreed to carry out significant transactions as collateral under a loan agreement with the Swiss iron ore company Ferrexpo to USD 500 million.

"The meeting took place today. A decision was made, as planned, in accordance with the agenda," a representative of the enterprise told Interfax-Ukraine on Tuesday.

The shareholders considered the issues of financial support of their "parent" company Ferrexpo AG and its divisions Ferrexpo Finance plc, Ferrexpo Middle East FZE and decided to pledge the property of Poltava GOK under an agreement to open a revolving pre-export credit line in the amount of up to 500 million with an interest rate not exceeding LIBOR for three-month deposits in USD plus 4 percent with final maturity on September 30, 2021.

BNP Paribas S.a. acts as the coordinating authorized main organizer and the initial creditor, the fiduciary for the enforcement of payment obligations by the Ferrexpo group.

The decision was not easy. Earlier, the shareholders of PGOK planned to hold a meeting on July 17 this year with a similar agenda, but it did not take place due to the lack of a quorum. As a result, the meeting was postponed to August 8, 2017, at which the planned decision was made.