Russian Metals Miner to Issue Dollar Bond

Metals miner Norilsk Nickel is set Tuesday to become the first Russian company to issue a bond in U.S. dollars in over nine months, according to a deal notice seen by The Wall Street Journal.

The company would have to pay a semiannual interest rate of around 7% on a bond that would come due in October 2022, according to initial pricing guidance provided in the deal notice. The bond is expected to be priced later on Tuesday, the deal notice said.

Norilsk Nickel is the world's largest producer of nickel and palladium, and a large producer of platinum and copper, according to the company's website. Norilsk Nickel didn't immediately return a request for comment.

No Russian company has borrowed money in U.S. dollars since January, according to data provider Dealogic.

The average yield on Russian corporate and quasi-sovereign corporate debt denominated in U.S. dollars rose to over 13% last December, according to Barclays. That followed a collapse in the price of oil; international sanctions on some Russian companies and individuals; and an escalation of the conflict in Ukraine. The yield, which falls as prices rise, has since dropped to 6.45%, according to Barclays.

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(END) Dow Jones Newswires

October 06, 2015 06:55 ET (10:55 GMT)

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