MMC Norilsk Nickel (hereinafter, MMC Norilsk Nickel or the Company), the largest global nickel and palladium producer, has announced the signing of a 5 year unsecured syndicated loan with a principal amount of US$ 2.1 billion. The facility consists of a US$ 1.575 billion amortising term loan and a US$ 525 million revolving facility. The term loan bears interest at a rate of 1 month LIBOR plus 1.75% p.a. while the revolver is priced at a rate of 1 month LIBOR plus 1.35% p.a plus utilisation fee capped at 0.4%.

The financing will be provided by a 16-strong lender group, comprising Bank of America, N.A., Barclays Bank PLC, BNP Paribas, Commerzbank Aktiengesellschaft, Crédit Agricole Corporate and Investment Bank, Deutsche Bank, HSBC Bank plc, ING Bank N.V., Morgan Stanley, Mizuho Corporate Bank, Ltd., OJSC Nordea Bank, Joint Stock Commercial Bank “ROSBANK” (Open joint-stock company), Sumitomo Mitsui Finance Dublin Limited, Société Générale Corporate & Investment Banking and The Bank of Tokyo-Mitsubishi UFJ, Ltd. and ZAO UniCredit Bank. Société Générale Corporate & Investment Banking is acting as Documentation Agent. UniCredit Bank AG, London Branch is acting as Facility Agent.

The Bank of Tokyo-Mitsubishi UFJ, Ltd. and ING Bank N.V. are acting as Information Agents. Barclays Bank PLC is acting as Structured Rate Agent. Barclays Bank PLC, Societe Generale, and UniCredit Bank AG are acting as Market Hedge Providers. Linklaters CIS acted as Lenders’ legal advisors. The borrower was represented by Debevoise & Plimpton LLP. The Company might consider a general syndication in the near term.

The proceeds from the loan will be used for general corporate purposes, serving amongst other for refinancing of short term debt maturities.

Sergey Malyshev, MMC Norilsk Nickel’s Chief Financial Officer said: “We are pleased with the particularly attractive terms of the transaction which confirms our positioning as a reliable borrower with strong credit metrics perceived by the international banking community as a global player in the metals & mining industry. The facility extends the Company’s debt maturity profile following recent successful placement of a USD750 million Eurobond. The facility further strengthens the Company’s financing strategy aimed at increasing diversification of the investor base, while forming the basis for continuing close cooperation with its relationship banks”.