Annual Report 2012

Debt structure

The net debt index was down 3% to RUB 32,671 million at the end of 2012. Relative debt remained unchanged, with the net debt/EBITDA ratio at 1.6. As of December 31, 2012, the Group had aggregate loan, borrowing and lease payables of RUB 61,559 million, a year-on-year increase of RUB 13,116 million, 38% for short-term loans and 62% for long-term loans. The debt increase is driven by the Group’s vigorous investment and financial activity.

Net debt index (RUB m)

  2012 2011
Long-term borrowings 38,176 32,391
Short-term borrowings 23,383 16,052
Total debt 61,559 48,443
Cash and cash equivalents 27,453 13,509
Irrevocable bank deposits 1,435 1,121
Net debt 32,671 33,813
EBITDA 19,924 20,856
Net debt/EBITDA 1.6 1.6

The major borrowers among the Group’s companies are its production facilities (Acron, Dorogobuzh and Hongri Acron), AS BCT and YSF.

Principal creditor banks included Sberbank of Russia, Bank VTB in Veliky Novgorod, Sviaz-Bank, UniCredit Bank, Raiffeisenbank, Nordea Bank Finland Plc. Estonia Branch, China Construction Bank, HSBC and other Russian and international banks.

During 2012, the Group aggressively obtained US dollar-denominated and Russian rouble-denominated loans. As of December 31, 2012, the share of dollar-denominated loans increased to 68%, up from 65% in 2011; the share of rouble loans and borrowings decreased to 23%, down from 25% in 2011.

In October 2012, the Group made a public offering of its exchange-traded rouble bonds with a 9.75% per annum coupon rate and a par value of RUB 5,000, to be redeemed in October 2015. No options are provided for this bond issue.

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