Nordgold Agrees $325 million 7-Year Debt Facility

Nordgold Agrees $325 million 7-Year Debt Facility

Nord Gold SE (“Nordgold” or the “Company”), the internationally diversified gold producer, is pleased to announce that the Group has entered into a US$325 million seven-year debt facility with Sberbank CIB[1].

Nordgold intends to use the proceeds to refinance its existing debt facility with Sberbank (approximately US$333 million).

Nikolai Zelenski, Chief Executive Officer of Nordgold, commented:

“Our ability to secure this new facility with Sberbank is testament to the current strength of our business and the long-term prospects for future growth. This facility, which provides highly favourable terms in what is a challenging market environment, extend the average length of our loan portfolio and improve our maturity profile. We are also pleased to extend our long-standing relationship with Sberbank, with whom we have worked successfully for many years. Our strong financial position, along with the commitment of our staff and management team, will allow us to continue to make progress on our long-term strategic and operational objectives.”

As at 31 December 2016, Nordgold’s total debt was US$861.6 million, while its net debt position was US$505.4 million. 

About Nordgold

Nordgold is an internationally diversified gold producer established in 2007. Nordgold has a proven track record of operational excellence and benefits from a significant international development pipeline. The Company is relentlessly focused on shareholder value, committed to running safe, efficient, profitable operations, which enable it to generate strong cashflows and in turn, continue to invest in its pipeline of new growth opportunities while generating returns for investors. In 2016, Nordgold produced 869 koz of gold.

Nordgold operates 9 mines (4 in Russia, 3 in Burkina Faso and one each in Guinea and Kazakhstan). It has one project in construction phase (Gross in Russia), several prospective projects in feasibility study, advanced exploration phase and a diverse portfolio of early-stage exploration projects and licences in Burkina Faso, Russia, French Guiana and Canada. Nordgold employs over 8,000 people.

Sberbank CIB

Sberbank CIB is the corporate and investment banking business of Sberbank. Its key areas of activity are corporate finance (including trade finance), the documentary business[2], investment banking services, trade operations with securities, and private equity. Sberbank’s corporate and investment banking business provides integrated financial solutions and investment advisory services to its clients, which include major corporations, financial institutions, sovereign states and federal and sub-federal government bodies and organisations.

This information is provided by RNS
The company news service from the London Stock Exchange

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