GMK Noril'skiy nikel' : PJSC MMC Norilsk Nickel signs a 5-year usd 2.5 billion syndicated facility agreement with ...

Moscow - PJSC MMCNorilsk Nickel announces the signing of a 5-year USD 2.5 billion facility agreement with the syndicate of international financial institutions.

Taking advantage of the current market conditions the Company achieved favorable terms of the syndicated loan supported by the considerable demand from a number of American, European and Asian banks. The proceeds will be used for refinancing of the existing debt, financing of capital expenditures and general corporate purposes.

Nornickel's President Vladimir Potanin commented,

'In line with the strategy to optimize its cost of capital our Company has been very active on debt capital markets in 2017. Nornickel successfully placed two Eurobond issues in the first half of the year, executed a number of cost-effective bilateral transactions and now we are finishing the year with this jumbo facility, which establishes a new benchmark for the Company. I appreciate support of our major international partner-banks and consider this deal as a strong proof of global capital markets' confidence in Nornickel as a strong credit.'

Sergey Malyshev, the Company's Senior Vice-president and Chief Financial Officer commented, 'The Company has achieved one of the lowest interest rates of Libor 1M+1.50% per annum available for Russian corporates on international syndicated market since 2008 for the transactions of such size and term. The new syndicated loan will facilitate further optimization of the debt repayment schedule by eliminating refinancing risks for the two coming years and decrease the average interest rate of the credit portfolio. One of the advantages of this facility is that it benefits from a dual-tranches structure which allows us to immediately utilize up to USD1.5bln for refinancing and other general corporate purposes and proactively address with another USD1bln of available liquidity funding needs that will appear in 1 half of 2018 including repayment of Eurobond issue maturing in April 2018'.

Crédit Agricole Corporate and Investment Bank, AO UniCredit Bank, The Bank of Tokyo-Mitsubishi UFJ, Ltd., China Construction Bank Corporation, Seoul Branch, Commerzbank Aktiengesellschaft, Industrial And Commercial Bank of China Limited, Sumitomo Mitsui Banking Corporation Europe Limited, ING Bank, Mizuho Bank, Ltd. and other bank are acting as Mandated Lead Arrangers and Bookrunners, joined by HSBC Bank plc, AO Raiffeisenbank, Citibank NA, Jersey Branch, J.P. Morgan Securities Plc, Všeobecná úverová banka, a.s. and CIB Bank Ltd. as Mandated Lead Arrangers. ING Bank acting as Coordinator and Documentation Agent, UniCredit Bank AG, London Branch acting as Facility Agent. Debevoise & Plimpton LLP acting as Legal Advisor to the Company and Clifford Chance CIS Limited acting as Lenders' Legal Advisor.