Nordgold settles $525m debt

26th April 2021 By: Donna Slater - Creamer Media Contributing Editor and Photographer

Diversified gold producer Nordgold has repaid in full the $325-million seven-year debt facility provided to it by Russian State-owned bank Sberbank in April 2017.

It, in January, also repaid the full outstanding $200-million under a five-year syndicated loan provided to Nordgold in March 2018 by mandated lead arrangers. These lenders include Dutch multinational banking group ING, Russian bank AO Raiffeisenbank, Austrian banking group Raiffeisen Bank International, Russian universal bank PJSC Rosbank, French investment bank Societe Generale and financial services provider AO UniŠ”redit Bank.

Nordgold CEO Nikolai Zelenski says the company’s decision to repay these two outstanding loans in full ahead of schedule reflects Nordgold’s “very strong financial position”, with 2020 earnings before interest, taxes, depreciation and amortisation having exceeded $1-billion, while cash and cash equivalents were at $739-million at the end of 2020.

As of April 26, Nordgold’s total outstanding debt comprises a $400-million five-year Eurobond that matures in 2024.

Further, in March, Nordgold entered into a two-year $100-million environment, social and governance-linked revolving credit facility with a group of international banks, which has yet to be drawn upon.

Zelenski points out that robust free cash flow generation enables Nordgold to invest in its low-cost and low-risk development pipeline anchored in the Gross mining region, in Russia, to advance its new Tokko project and to further expand its flagship mine – Gross, while continuing to deliver shareholder returns.

Nordgold owns and operates nine mines across Russia, Kazakhstan, Burkina Faso and Guinea.