18 Dec 2019 13:09

Polyus could redeem 2020 Eurobonds exclusively via cash flow, but more likely to use array of instruments - CEO

MOSCOW. Dec 18 (Interfax) - PJSC Polyus could fully redeem 2020 Eurobonds exclusively via cash flow, but is likely to use an array of instruments for refinancing, the gold miner's CEO Pavel Grachev told reporters.

The Eurobonds are due to mature in April of the coming year. They were placed in April 2013 in volume of $750 million, with $680 million remaining in circulation as of September 2019.

There is no decision thus far on what sources to use to redeem the bonds. "We will monitor the situation at the moment of calculation. Theoretically, in light of cash we have on hand, we could use it as the source for full redemption," the CEO said.

However "most likely, it will be some array of instruments," he said. A new issue of Eurobonds or bonds on the domestic market could "theoretically be part of this array," Grachev said.

The net debt of Russia's leading gold producer stood at $3.3 billion as of the end of Q3 2019, with the net debt/adjusted EBITDA ratio at 1.5x.