Ferrexpo doubles credit facility to $400m and extends for another year

Ferrexpo on Thursday increased its 2017 pre-export finance credit facility from $195m to $400m and extended the tenor from three to four years.

The commodity trading and mining company said the credit facility was arranged by BNP Paribas and Deutsche Bank and includes seven other international lenders, with the cost of the facility steady at 450 basis points above US Libor.

A one-year grace period before quarterly amortisations commenced was maintained.

Chris Mawe, chief financial officer of Ferrexpo, said: "The extension of this facility smooths and extends the group's debt maturity profile and is in line with Ferrexpo's strategy to have a principal revolving, low cost, long term debt facility that amortises on a quarterly basis."

The credit facility was initially entered into in November, when it included a total of just seven international lenders with a stipulated final payment date of 31 December 2020.

Ferrexpo’s shares were up 2.44% at 173.95p at 1124 BST.