Polymetal closes $250m bank loan
LSE-listed Polymetal International has secured a $250-million, five-year fixed rate loan with Alfa-Bank, which the miner plans to use to refinance maturing debt.
The loan has created a significant liquidity reserve at an attractive fixed interest rate, the company stated on Tuesday.
Polymetal’s average interest rate in the first half of the year was 4.11%, compared with 3.96% in 2017 and 4.33% in 2016. Nearly half of the firm’s portfolio has a fixed interest rate.
At June 30, the company's net debt stood at $1.65-billion, which is 2.08 times its adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda). Polymetal said that its net debt should be back to its normalised level of below 2 times adjusted Ebitda by year-end.
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