Metaloinvest continues decreasing its debt burden

Ural Steel has transferred 3.1 billion rubles to the Sberbank of Russia in account of its loan amortization. Mikhailovsky Mining and Processing plant (Mikhailovsky GOK) has transferred 1.5 billion rubles to the bank as well. At the same time Ural Steel has paid 3 billion rubles to the Bank of Moscow and cancelled the loan provided by the bank. The funds to provide advanced payments have been raised through a combination of the subsidiaries’ own cash and refinancing.

Deputy Chief Executive Officer – Chief Financial Officer of the Metalloinvest Management Company Pavel Mitrofanov commented: “From the beginning of 2010 our debt burden has decreased for $1.2 billion. As of December 1, 2010 the Metalloinvest Holding’s total debt amounts to $4.2 billion. We continue optimization of our debt portfolio through reduction of loans volume, decrease of the average weighted interest rate in accord with the market conditions and extension of the long-term credit loans share. Metalloinvest’s net debt to EBITDA ratio is expected to be 1.55 times by the end of year which is a comfortable level”.