Nordgold Enters into US$500 million 5-year Facility Agreement with Sberbank CIB
Amsterdam, Netherlands, March 17, 2014 - Nord Gold N.V. (“Nordgold” or the “Company”, LSE: NORD), the internationally diversified, pure-play gold producer strategically focused on emerging markets, is pleased to announce that it has entered into a 5-year facility agreement with Sberbank CIB in the amount of US$500 million.
Nordgold intends to use the proceeds to repay its existing debt facilities (approximately US$ 465.5 million) and the balance for general corporate purposes.
Message from the CEO
We are pleased to have secured this longer term facility on attractive terms despite challenging market conditions. It reflects the current strength of our business and the long term prospects for future growth. The funds raised will enable us to reduce the average interest rates we pay on our debt, extend the average length of our loan portfolio and improve our maturity profile. We are also pleased to further strengthen our relationships with Sberbank with whom we have worked successfully. Together with their long term support and the strength of our staff and management team, we are confident of achieving our long term objectivesNikolai Zelenski, Chief Executive Officer, Nordgold
As of December 31, 2013 Nordgold’s total debt was US$968.0 million. The Company’s net debt position was US$723.9 million in the end of 2013.
- (1) On the basis of CJSC “Sberbank CIB”
- (2) Financing provided by Sberbank of Russia
Nordgold (LSE: NORD) is a pure-play emerging-markets gold producer established in 2007. Nordgold has expanded rapidly through acquisitions and organic investment, achieving a rate of growth unmatched in the industry during that period. In 2013, Nordgold’s gold production was 924.4 koz, up from 717 koz in 2012.
The Company operates 9 active mines and has one development project, 5 advanced exploration projects and a diverse portfolio of early exploration projects and licenses in Russia, Kazakhstan, Burkina Faso, Guinea and French Guiana. Nordgold employs about 10,000 workers.