Norilsk Nickel and Sberbank CIB Agreed on Project Financing
The facility is arranged by Sberbank CIB1 in the form of project financing without recourse to Norilsk Nickel based on results financial and economic assessment of Bystrinskiy Project.
"This financing is a unique deal in the Russian market, рroject financing of the Bystrinskly project is a unique arrangement for the Russian market, the appeal of which for the Company shareholders is further boosted with the involvement of Sberbank, a robust financial partner", said Sergey Malyshev, Vice-president - Chief Financial Officer of Norilsk Nickel. "The transaction is a result of a close cooperation with Sberbank nurtured over the last several years. We have decided in favour of Sberbank CIB's proposal as it appeared to be the best among all offers we received."
"Bystrinskoye is one of the world ten largest copper deposits. The realization of this project is of a strategic importance for both the Company's business and the economy of the country. Construction of the world-class mining and concentration complex will create over 3000 jobs and give an momentum to the development of the region. We like the opportunity to participate in such an importance project and offer a financial solution that accommodates the needs and interests of our client", - said Maxim Poletaev, the First Deputy Chairman of the Executive Board of Sberbank.
The recent fund raising transactions of the Company have proved the lenders' confidence in Norilsk Nickel as well as the quality of its production assets, which remain attractive for investors even in a volatile market environment.
On December 29, 2015 the Company reported the signing of legally-binding investment agreements with the Chinese Highland Fund, that intends to acquire a 13.33% stake in the Bystrinsky project for a total consideration of USD 100 million. The transaction is subject to approval of the Federal Antimonopoly Service of Russia.