Norilsk Nickel attracts $1 billion from VTB

A year ago, Norilsk Nickel submitted an application for project financing from VEB for development of Bystrinsky GOK, and a month later the company received three proposals "from leading Chinese investors", said the first deputy general director of Norilsk Nickel Pavel Fedorov in July last year. But Norilsk Nickel didn’t wait for them: the company reached an agreement with VTB for a loan in the amount of $1 billion, two sources familiar with the deal told the Vedomosti. VTB’s representative said that the bank had already made a deal of project financing for the development of the Bystrinskoye deposit by providing funding for $1 billion for 10 years. Neither the representative of VTB, nor the sources of the Vedomosti disclose the loan rate.

One of the sources, familiar with the terms of the deal, says that the issue of attracting the loan from VTB will be considered at the next meeting of the Norilsk Nickel’s Board of Directors. And it's not just about the project financing. VTB may act as a financial investor, received an option for the purchase of up to 25% in the project company, two sources of the Vedomosti know. The VTB’s representative declined to confirm the information about the possible option, but noted that Norilsk Nickel was "one of the most successful Russian companies and strategic client of VTB".