Polymetal International (LON:POLY) announced that it has agreed a 10-year fixed rate loan of US$ 500 million with Sberbank.
The credit facility will replace the existing loans with Sberbank, which were due to mature between 2021 and 2024, and other short-term debt. It will be drawn down until the FY 2019 year-end and is repayable in equal installments between 2026 and 2029.
“This is the first 10-year credit facility in Polymetal’s history, which will significantly extend the average tenor of our loan portfolio at a reduced cost and smooth out our repayment profile, removing peak repayments from the years of construction of Nezhda and POX-2. We are very pleased with the level of support received on this transaction from Sberbank. The 10-year credit facility further reinforces our strong relationship with Sberbank as a long-term partner”, – said Eugenia Onuschenko, Corporate Finance Director of Polymetal.
Anatoly Popov, Deputy Chairman of the Executive Board, Sberbank:
“We have a long-standing partnership and we’re committed to further cementing our ties with one of Russia’s leading mining companies. I’m sure that the new credit facility will contribute to strengthening Polymetal’s market position.”
Polymetal International’s Net Debt of US$ 1.7 bn as of 1 October 2019 remained largely unchanged compared to the end of the second quarter. The Company generated significant free cash flow in the third quarter which was distributed to shareholders via dividend (US$ 94 million paid on September 27). The Group confirms its mid-term target of 1.5x Net Debt/Adjusted EBITDA.