Norilsk Nickel sees little benefit in Eurobond buyback at present
MOSCOW. Aug 29 (Interfax) - Norilsk Nickel believes that it does not currently make sense to buy back Eurobonds it placed on the market in 2013, the Russian mining giant's CFO, Sergei Malyshev told reporters.
"We considered the possibility of an early buyback of our Eurobonds, but there is no big benefit for us from this transaction. This is both our observation and the result of consultations with banks. We don't deny such a possibility, but for now we don't see big potential from this deal, because investors really value our bonds," Malyshev said.
Norilsk Nickel's board of directors authorized a potential early buyback of the company's Eurobonds in mid-April.
Norilsk Nickel places two Eurobond issues last year - a five-year issue of $750 million at 4.375% in April and a seven-year issue of $1 billion at 5.55% in October. The second offering was coordinated by Bank of America Merrill Lynch, Barclays, Citigroup, Sberbank CIB and Societe Generale. Norilsk Nickel placed its previous Eurobond issue, totaling $500 million, in 2004 and redeemed it on schedule in 2009.
