Bystrinskoye gold-iron-copper ores field (Bystrinskiy GOK) (2013-2016)
Key information:
- Sponsor: PJSC Norilsk Nickel
- Borrower: LLC Bystrinskiy GOK
- Annual production and enrichment of 10 million tons per year
- Finished products – 300,000 tons of gold-copper concentrate and 2,8 mln. tons of magnetite concentrate per year
- Capital expenditure – equivalent to $1.4 bln
- Lender: Sberbank
- Financial consultant: RPFB
- Loan: USD 800 mln
- Loan tenor: 8 years
Organizational and financing features:
- VEB decided to raise financing after the sanctions, having received funding from Chinese banks in yuan
- RPFB participated in the development of a strategy to reduce price risks
- Application of the project financing scheme allowed to classify it as a first-class project
- The foreign investor is attracted
- Lack of a positive solution to the issue of financing the construction of transport and energy infrastructure delayed consideration of financing for 1 year
- Mining machinery quarry and park project was optimized
- RPFB was approved by the VEB Supervisory Board, but eventually the loan was received from Sberbank in US dollars
- Sberbank’s request for 50/50 project financing
- Sberbank’s demand to sign a «off-take» contract as a deferral condition for providing financing
- The role of RPFB helped to create a competitive environment among lenders and to improve credit conditions for borrowers
- Transaction based on Russian law
Bystrinskiy GOK – financing structure