Norilsk Nickel chooses Barclays, Citigroup, Societe Generale to organize Eurobonds
MOSCOW. April 19 (Interfax) - MMC Norilsk Nickel has appointed Barclays, Citigroup ad Societe Generale to organize meetings with investors, as a result of which the company might place dollar-denominated Eurobonds.
The meetings, which will take place in Europe, will kick off on April 22, a source in banking circles told Interfax.
Norilsk Nickel's board of directors approved the placement of the company's first Eurobond issue back in January. MMC Finance Limited, a Norilsk Nickel subsidiary registered in Ireland, was supposed to carry out the issue at the end of last October. The company did not specify the volume or reason for the issue. In February Norilsk Nickel placed 35 billion rubles of exchange bonds with yield at 7.9%.
This year the company has to pay back around $1.26 billion in debt. As per the shareholder agreement, dividend payouts for 2012 should total $2 billion, and the investment program for 2013 is $2.5 billion.
By the end of 2012, Norilsk Nickel's net debt came to $4.065 billion, up 5.3% over 2011. The net debt to EBITDA ratio was less than 1.
According to CFO Sergei Malyshev, in its choice of borrowing instruments in 2013, Norilsk Nickel is considering a wide array of options and has yet to make a final decision.