Debt portfolio management

Debt management

Nornickel maintains a conservative approach to managing its debt. As at 2023‑end, its net debt/12M EBITDA stood at 1.2x. To raise new debt, the Company considers both public instruments and bank loans, striving to balance both in its debt portfolio. When choosing debt financing sources, the Company pays particular attention to the debt currency and loan parameters. The Company strives to maintain a comfortable level of liquidity and standby credit facilities to cover its refinancing needs.

As at 2023‑end, the Company’s debt decreased by 13% from 31 December 2022 to USD 10,232 million, driven among others by a weaker rouble during 2023.

Bonds

In May, the Company placed a five‑year RUB 60 billion exchange‑traded bond with a coupon rate of RUONIA + 1.3%, named by Cbonds as the Best Primary Offering of a Metals Company.

In April, the Company timely fulfilled its obligation to redeem its USD 1 billion eurobond.

The Company closely monitors changes in the external regulatory environment to enable timely responses, while prioritising strict compliance with the terms of debt instruments and promptly aligning loan documents with applicable laws. The Company meets all payment schedules on time, fully servicing its debt as planned. In addition, the Company timely renews permits from the Russian Government required to make payments of principal and interest in foreign currencies to foreign creditors.

The Company continues to make split coupon payments on all of its eurobonds in accordance with the terms and conditions of the offering documents and the requirements of Russian laws: payments to holders whose rights are recorded by Russian depositories and holders whose rights are recorded by foreign institutions. The scheduled redemption of the eurobond in April also involved split payments.

In December 2023, as required by Executive Order of the Russian President No. 430 dated 5 July 2022, the Company placed replacement bondsBonds which, when placed, are paid for in eurobonds or in cash with the proceeds earmarked to purchase eurobonds. to substitute for the eurobonds maturing in 2025 and 2026. The outstanding issues were worth USD 315.6 million and USD 333.5 million, respectively. In October 2023, the Company was permitted not to place replacement bonds to substitute for the eurobonds maturing in 2024.