Khartsyzk Tube Gets USD 7 Mln Credit Line From Raiffeisenbank Ukraine

Raiffeisenbank Ukraine opened a USD 7 mln multicurrency credit line to Khartsyzk Tube (HRTR: SELL) at 9.24% for three years. HRTR received the first tranche of EUR 144.7 ths on August 2. Concorde Capital: The company will likely use the borrowed funds to finance its working capital. This will be a necessary step if HRTR wants to switch to operating under more transparent rules. In this case, the pipe maker will have to buy raw materials for money instead of receiving them under the tolling agreement with Azovstal and giving finished pipes back to Azovstal. In addition, a portion of the credit may be used to finance HRTR?s CapEx programs aimed at cost saving measures and broadening product assortment.