According to the information provided by Asters legal services firm, which is an advisor to Mryia with IFC, company is planning to increase its credit line to USD 60 million from previous USD 35 million, as the current credit line ends in March of 2014. Another credit in the amount of USD 5 million with maturity of 3 years is requested for purchase of waste-handling equipment.

This is the perfect time for Mriya to ask for additional loan as its credit rating was increased by S&P rating agency recently. Company is planning to use attracted funds for its net working capital subsidization. There were no additional details released regarding the potential deal, however we are certain that the new conditions will benefit IFC in terms of interest payments conditions. Given 2013 financial performance, we can also expect higher financial expense for Mriya, which might be a burden on its net profit eventually. We will be monitoring the situation and update you as soon as new details come out.

Author: Alex Morgun, Financial Analyst, UkrAgroConsult