UPDATE 1-Czech miner OKD takes loan to ready for IPO

(Adds syndicated credit details, background company)

PRAGUE, Nov 20 (Reuters) - Czech coal group OKD has agreed to draw 720 million euros ($924 million) before the end of this year via a syndicated credit from a group of 13 international banks led by Citigroup <C.N>, the mining company said on Monday.

Unlisted OKD said in a statement it would cut its equity and use the loan to revamp its capital structure before a planned initial public offering of its owner, New World Resources (NWR).

OKD said it might draw as much as 1.1 billion euros in several tranches with maturities of five, six and seven years.

"Before we enter capital markets, we have to adjust the debt to equity ratio on OKD's balance sheet to a level which is common at similar companies in the developed countries," OKD Chairman Zdenek Bakala was quoted as saying in the statement.

NWR, registered in the Netherlands, was created as an umbrella company to hold OKD and other mining activities of Cyprus-based private equity firm RPG Industries Ltd., which is partly controlled by Czech financier Bakala.

NWR is looking at Prague, Warsaw and London as possible markets for the offering, expected to take place in the middle of next year.

RPG bought into the Czech black coal industry in 2004. OKD, located on the Polish border, is a key coal supplier to the Czech Republic's biggest steel firm, a unit of Mittal Steel <MT.N>. ((Reporting by Marek Petrus, editing by Greg Mahlich;

Reuters Messaging: marek.petrus.reuters.com@reuters.net;

e-mail:prague.newsroom@reuters.com/marek.petrus@reuters.com;

tel: +420 224 190 477)) ($1=.7789 Euro)

Keywords: ENERGY CZECH OKD