Petropavlovsk shares fall 25% as Gazprombank prompts $300m repayment

Petropavlovsk released an announcement on Wednesday regarding the repayment of $300m to Gazprombank (GBP) which sent its shares tumbling 25% to 1.57p in early morning trade.

Russian gold miner Petropavlovsk has seen turbulent times especially due to its exposure and association with GPB due to the Russian invasion of Ukraine. GPB is on the UK Sanctions List and has been designated for an asset freeze under the Russia Regulations 2019 which was previously reported.

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Following up on Petropavlovsk’s prior announcements, the group has now received warnings from GPB claiming that they must make prompt repayment of approximately $201m including accrued interest under the company’s Committed Term Facility Agreement with GPB.

GBP also said Petropavlovsk has to make a repayment of approximately $87.1m including accrued interest due under the group’s Russian companies’ revolving credit facilities by April 26, 2022.

GPB has also received notice from Joint Stock Company UMMC-INVEST, as successor agent under the Term Loan, that all of its rights under the Term Loan and accompanying finance instruments have been assigned to UMMC-INVEST.

The ramifications of these notices are being discussed with the company’s advisers.

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