Norilsk Nickel Becomes Winner of EuroWeek Syndicated Loan Awards
OREANDA-NEWS. On February 12, 2007 EuroWeek financial weekly named OJSC MMC Norilsk Nickel (hereinafter “Norilsk Nickel” or “the Company”) the winner of EuroWeek Syndicated Loan Awards in the category “Best Russian Loan of 2007”, reported the press-centre of Norilsk Nickel.
The Company was also awarded the second prize in the category “Best Overall Emerging Market Loan of 2007”.
The Company took both prizes for its highly professional performance in preparing and concluding a transaction to obtain a syndicated loan for $6 billion as part of the successful acquisition of LionOre Mining International Ltd. BNP Paribas and Societe Generale banks acted as lead loan managers.
Winners of EuroWeek Syndicated Loan Awards are selected by voting of representatives from leading banks located in different countries.
“We are grateful to representatives of the banking community and to EuroWeek for their high regard of our performance. This loan facilitated the successful acquisition of international assets, which represents the largest transaction of its kind in the history of Russian business”, - said Denis Morozov, General Director of Norilsk Nickel.
According to Sergey Gryaznykh, Director of Norilsk Nickel’s Treasury Department, the Company has arranged this transaction so that it involved both secured and unsecured term loans, as well as an unsecured revolving credit facility. The two-fold benefit of this approach included more attractive financial terms of the transaction and compatibility with the Company’s forecasted cash flows. “Generally, syndicated credits are structured as revolving facilities to cover short-term liquidity deficit. Given our credit rating, reaffirmed by three leading rating agencies in connection with the acquisition of LionOre Mining International Ltd., there was no need to reduce the financial leverage of Norilsk Nickel by allocating a part of this debt to the assets acquired overseas”, - Sergey Gryaznykh noted.
EuroWeek is a leading weekly newspaper published by Euromoney Institutional Investor PLC since 1987 to cover developments on international capital markets. Currently the readership of the weekly is 13.5 thousand people across the globe, who receive with EuroWeek new financial information and updates from Europe, the Pacific and Americas. EuroWeek has been awarding best loan transactions since 1992, and in 2003 it launched the annual official dinner as part of EuroWeek Syndicated Loan Awards, which features participation of around 500 credit bankers who evaluate and select the world’s best financial transactions.
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