Norilsk Nickel closes a 10 year credit facility covered by Euler Hermes

OJSC “MMC “Norilsk Nickel” and a group of western financial institutions signed a EUR 278,8 million facility covered by Euler Hermes Kreditversicherung AG for the purpose of refinancing of its shipbuilding program for the construction of four arctic icebreaking class container vessels by Aker MTW Werft GmbH, Germany. The Facility has a 10 year tenor and will be drawn in US dollars.

The facility was arranged by Bayerische Landesbank, Calyon Deutschland, DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main and ING Bank N.V., Frankfurt Branch (together, the “Mandated Lead Arrangers” and “Lenders”).

DZ Bank AG Deutsche Zentral-Genossenschaftsbank is acting as Facility Agent. ING Bank N.V., Frankfurt Branch is acting as Documentation Agent and as Export Credit Agency Agent.

Gide Loyrette Nouel acted as the Borrower’s legal counsel.

According to Oleg Lobanov, the Company’s Chief Financial Officer, this transaction is the first but certainly not the last ECA loan in MMC Norilsk Nickel’s borrowings history.

“We are pleased that we were able to successfully close this facility with the right combination of tenor and attractive borrowing costs despite current economic and financial markets environment.  The Company will continue considering borrowings under ECA cover to finance its capital investment program. This will help us to diversify our credit portfolio and optimise the debt repayment profile” he noted.