28 April 2021

 Kuzbasskaya Toplivnaya Company has agreed on a complete restructuring of its loan portfolio with leading Russian and foreign banks.

Kuzbasskaya Toplivnaya Company has agreed on a complete restructuring of its loan portfolio with leading Russian and foreign banks.
Kuzbass Fuel Company (PJSC KTK) has agreed on conditions for restructuring its loan portfolio with leading Russian and foreign banks. The restructuring took effect in April 2021. During the restructuring, 10% of the company's total loan debt was repaid.

During negotiations with 6 leading Russian and foreign creditors of the company, an agreement was reached on the restructuring of the entire loan portfolio. Lenders kept their initial interest rates, and some lowered them.

The work on restructuring the entire loan portfolio of the company was long and difficult. It was complicated by the fact that foreign credit organizations work within the framework of the Paris Climate Agreement, and are aimed at withdrawing from financing coal industry projects both in Russia and abroad. The task of the company was to synchronize all creditors under the same conditions.

The reached agreement on restructuring means stabilization of the company's operating activities, restoration of trust in the company on the part of partners. It will focus on improving operational efficiency and modernizing those directions of activity that will increase the overall profitability of the business.

Natalia Suragina, Deputy General Director for Interaction with the Banking System and Financial Control of PJSC KTK:
"In modern conditions, coal companies cannot operate without attracting borrowed capital. Effective lending allows you to invest in the development of production capacities and technical re-equipment, to avoid seasonal cash gaps.

In April 2021, restructuring agreements were signed with all creditors. All creditor banks trust KTK PJSC, realizing that this is a perspective company, one of the industry leaders, and it will never have problems with repaying loans in the future. The reasons for the positive forecasts are, among other things, the high technological efficiency of the company, modern equipment and new infrastructure, the prospect of further growth of production capacities, quality characteristics of products and the restored demand for energy coal in the world market.

The agreed terms of restructuring will ensure the stable functioning of the company in today's economic realities, as well as allow us to plan further business development, which will help us maintain a leading position in the industry and continue to make a significant contribution to the economy of the regions where the company is present. "

According to the results of Q1 2021, the operational and financial indicators of the Kuzbass Fuel Company showed a significant increase compared to the same period in 2020. The volume of energy coal sales according to the results of Q1 2021 increased by 32% - from 2.5 to 3.3 million tons.

The revenue of the Kuzbass Fuel Company in the 1st quarter of 2021 increased by 38% compared to the 1st quarter of 2020 - from 8,038,638 to 11,117,754 thousand rubles.

The company's EBITDA in Q1 2021 reached 1,516,667 thousand rubles. Net profit for the 3 months of 2021 amounted to 667,538 thousand rubles.