GO
Loading...

Evraz fundraising falls short amid Russia tensions

Evraz, the Russian steelmaker, fell victim to the hostile environment for the country's companies when it raised less than expected in a syndicated loan from a number of European banks.

The London-listed company, which is not on any sanctions list from the U.S. and European Union, raised $425 million, well below its $900 million target. No U.S. banks took part in the loan.

Russian companies have faced stringent sanctions from Western governments over the annexation of Crimea and the country's role in increased tensions in eastern Ukraine. This has pushed Western banks into imposing stricter rules, with some lender banks insisting firms make instant repayments if sanctions take effect.

Read MoreNew sanctions for Russia—here's where they'll hurt

Evraz Chief Financial Officer Giacomo Baizini told CNBC that it was indeed "more challenging than it was in the past" for Russian companies to raise money.

He added that the target sum of $900 million had always been the company's maximum target when it came to seeking out a loan but "in fact, the $425 million does cover most of our financial needs for the next 12 months."

Earlier Wednesday the company announced that it was to sell a 34 percent stake in its Evraz Highveld Steel and Vanadium division to South African investment company Macrovest for $27 million.

CNBC Global CFO Council

Video

  • CNBC's Phil LeBeau speaks to Bob Shanks, Ford Motor Company CFO, about the automaker's quarterly earnings results and the impact of the European economy on profits.

  • Discussing UPS' quarterly earnings and how they are belter equipped this holiday season, with Kurt Kuehn, UPS CFO.

  • It was pretty much an in line quarter, says Jon Moeller, Procter & Gamble CFO breaking down P&G's quarterly results and discussing the next wave of products.