PJSC MMC Norilsk Nickel said Oct. 3 that it signed a five-year, US$500 million committed revolving back-stop credit facility with a syndicate of international banks.

CFO Sergey Malyshev said the participation of top-level, international banks in the total number of credit lines available for the company enables Norilsk to maintain a liquidity cushion of at least US$2 billion in the medium term perspective.

"The transaction supports our financial strategy aimed at balancing our extra cash reserves with more flexible and cost efficient instruments."

Commerzbank AG, HSBC Bank plc, Mizuho Bank Ltd., Sumitomo Mitsui Banking Corp. and UniCredit Bank were acting as mandated lead arrangers and bookrunners, while UniCredit Bank AG London branch was tapped as facility agent.

In a separate news release, Norilsk Nickel signed a 13-year, €37.8 million credit facility agreement with Commerzbank AG covered by Euler Hermes.

The proceeds will be used to finance 85% of the construction costs of an electric power substation in Norilsk area.

Malyshev said, "This new transaction will serve as a milestone in our work with foreign suppliers and contractors."