Annual Report 2007 - Severstal

OAO Severstal and subsidiaries
Notes to the consolidated financial statements
for the year ended December 31, 2007
(Amounts expressed in thousands of US dollars, except as otherwise stated)
23. Debt finance
December 31,
2007 2006 2005
Citibank CLN – Eurobonds 2009 325,000 325,000 325,000
Citibank CLN – Eurobonds 2014 375,000 375,000 375,000
Other issued bonds – 113,934 327,446
Bank financing 2,357,588 1,901,046 1,628,709
Factoring of receivables 201,909 224,049 191,732
Other financing 51,046 29,679 60,674
Accrued interest 40,355 54,748 39,720
Unamortized balance of transaction costs (23,996) (17,857) (20,462)
3,326,902 3,005,599 2,927,819
Total debt is denominated in the following currencies:
US Dollars 1,501,465 1,210,753 1,287,620
Roubles 391,196 345,728 338,894
Euro 1,432,490 1,449,118 1,301,305
Other currencies 1,751 – –
3,326,902 3,005,599 2,927,819
Total debt is contractually repayable after the balance sheet date as follows:
Less than one year 972,079 957,564 996,125
Between one and five years 1,659,450 1,488,594 1,496,325
After more than five years 695,373 559,441 435,369
3,326,902 3,005,599 2,927,819
Debt finance rose from banks and unused long term credit lines are secured by charges over:
– US$ 210.4 million (December 31, 2006: US$ 221.3 million; December 31, 2005: US$ 129.4 million) net book value of plant and equipment;
– US$ 515.7 million (December 31, 2006: US$ 1,015.6 million; December 31, 2005: US$ 1,296.2 million) of current assets and revenues from export
contracts; and,
– US$ 243.4 million (December 31, 2006: US$ 365.9 million; December 31, 2005: US$ 97.1 million) of financial assets.
A part of the Group’s debt financing is subject to certain covenants. The Group complied with all debt covenants, including equity ratios, during the years
ended December 31, 2007, 2006 and 2005.
At the balance sheet date the Group had US$ 983.7 million (December 31, 2006: US$ 422.1 million; December 31, 2005: US$ 319.9 million) of unused
long term credit lines available to it.
24. Other current liabilities
December 31,
2007 2006 2005
Amounts payable to employees 246,448 186,431 149,757
Advances received 214,405 230,696 156,494
Provisions (Note 26) 43,974 12,011 17,736
Accrued expenses 24,123 41,396 19,525
Lease liabilities 9,926 2,579 1,964
Other liabilities 61,704 33,735 33,742
600,580 506,848 379,218
Severstal Annual Report 2007 93