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Rusal Intends to Direct Norilsk Nickel dividends to Repay Loans

By Bill Pradi
Posted Feb 12, 2013 in Business
UC Rusal plans to direct dividends from its 25% stake in MMC Norilsk Nickel to pay off company’s debt, said CEO of the aluminum company Oleg Deripaska, in an interviewto Russian TV channel.
"We are one of the shareholders of Norilsk Nickel, and we do have obligations to the banks. Virtually all funds will go to pay off our old bank loans", said Deripaska. According to 9m2012 IFRS report, net debt of Rusal decreased by 3.1% to $10.710 billion from $11.049 billion at the end of 2011.
Earlier Rusal stated that the dividend payments from Norilsk Nickel for 2012 - 2014 may correspond to at least $ 9 billion. By the end of 2012 dividends could be amounted to $2 billion and in 2013 and 2014 - $3 billion per year. It is also planned to pay $1 billion in accordance with the stipulated sale of foreign or non-core energy assets.
Vladimir Potanin from Interros in the end of December 2012 said that Norilsk Nickel in the coming years plans to pay an interim dividends as well. In the opinion of all shareholders, Norilsk Nickel can go from 2014 to pay dividends twice a year instead of annual, and focus on the benefits the company will be based on metal prices and operating performance, by about one-half of EBITDA .
The authorized capital of MMC Norilsk Nickel consists of 190,628,000 ordinary shares with a par value of 1 ruble. Major shareholders: Interros - about 28%, UC Rusal - 25%, owners of Metalloinvest - up to 4%.

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