Norilsk Nickel looking at $1bn Eurobond refinancing

Norilsk Nickel - the world's largest nickel miner - is reported to be in talks to refinance its debts through issuing a $1 billion Eurobond

MOSCOW (Reuters) - 

Russian metals company Norilsk Nickel (GMKN.MM: Quote) is discussing with banks the possibility of refinancing its debt by issuing a $1 billion Eurobond in the first half of 2010, banking sources told Reuters on Tuesday.

Norilsk Nickel declined to comment.

"The company is in talks on various ways of debt refinancing, including placing a Eurobond," one of the sources said, on condition of anonymity.

The placement of the bond, which would be worth at least $1 billion, may happen in the second quarter of 2010, the source said.

"A Eurobond is one of the possible options, but the company will take a decision depending on the market situation," another source said, confirming the possible size of the issue.

A third source confirmed Norilsk was in talks with banks on refinancing its debt, but did not elaborate.

By the end of the first half of 2009, Norilsk's debt was $6.1 billion, of which 48 percent was short-term debt.

Norilsk's main shareholders are Vladimir Potanin and the world's top aluminium producer, UC RUSAL, controlled by another Russian tycoon, Oleg Deripaska. Each has a quarter of the mining company's shares.

In September, chief executive Vladimir Strzhalkovsky said Norilsk had repaid its debut Eurobond, a $500 million deal launched in 2004 and had not taken any new loans this year.  (Reporting by Oksana Kobzeva, Dmitry Sergeyev and Polina Devitt; Writing by Aleksandras Budrys; Editing by Dan Lalor)

© Thomson Reuters 2009 All rights reserved

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