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Financial Statements Notes to the Consolidated Financial Statements for the year ended 31 December 2015 continued (all amounts are presented in thousands of US dollars, unless otherwise stated) 18 Bank borrowings and other loans received Currency Fixed or floating rate Interest rate 2015* Interest rate 2014* 31 December 2015 31 December 2014 Current loans and borrowings Short-term unsecured bank loans US$ Floating 2.54%-3.02% 2.49%-3.14% 350,000 286,996 Short-term unsecured loan from other related party US$ Fixed 3.0% – 9,000 – Short-term unsecured bank loans US$ Fixed 2.81%-2.95% – 175,000 – Current portion of unsecured long-term loan US$ Floating 2.28% 2.04% 400,000 200,000 Current portion of unsecured long-term loan RUB Fixed 10.20% 8.20% 102,905 177,751 Less: short-term portion of transaction costs loans and borrowings (2,512) (2,718) Total current loans and borrowings 1,034,393 662,029 Currency Fixed or floating rate Interest rate 2015* Interest rate 2014* 31 December 2015 31 December 2014 Non-current loans and borrowings Long-term loan from shareholder US$ Fixed – 5.00%-5.50% – 30,000 Long-term portion of unsecured bank loan US$ Floating 2.28% 2.04% 700,000 1,100,000 Long-term secured bank loan US$ Floating 3.34% – 750,000 – Long-term unsecured bank loan EUR Floating 2.50% – 218,700 – Long-term portion of unsecured bank loans RUB Fixed – 8.20%-12.25% – 346,615 Less: long-term portion of transaction costs loans and borrowings (17,681) (6,496) Total non-current loans and borrowings 1,651,019 1,470,119 Total loans and borrowings 2,685,412 2,132,148 * Contractual interest rate on the 31 December 2015 and 31 December 2014, respectively. Movements in the Group’s bank borrowings and other loans received during year ended 31 December 2015 and 31 December 2014 were as follows: Currency 2015 2014 Balance as at 1 January 2,132,148 2,261,665 Reclassification from capital contribution US$ – 50,000 Bank loans received US$ 1,383,700 937,996 Bank loans received RUB 165,039 770,754 Bank loans received EUR 213,940 – Bank loans received UAH* 134 4,339 Loan received from shareholder (Note 33) US$ – 63,000 Bank loans acquired in a business combination (Note 34) RUB 4,870 – Bank loan acquired in a business combination (Note 34) US$ 15,300 – Reclassification of intragroup loan provided to subsidiary before disposal US$ 9,000 – Bank loans repaid US$ (610,996) (999,207) Bank loans repaid RUB (515,076) (507,345) Bank loans repaid EUR – (45,152) Bank loans repaid UAH* (134) (4,308) Loan repaid to shareholder (Note 33) US$ (30,000) (83,000) Capitalization and amortization of transaction costs, net (10,979) 24,413 Foreign exchange (gain)/loss, net (61,932) 1,119,535 Currency translation differences, net (9,602) (1,460,542) Balance as at 31 December 2,685,412 2,132,148 * Ukraine Hryvnia (‘UAH’) 96 EuroChem Annual Report and Accounts 2015
The Group’s bank borrowings and other loans received mature: 31 December 2015 31 December 2014 – within 1 year 1,034,393 662,029 – between 1 and 2 years 526,106 530,736 – between 2 and 5 years 1,124,913 939,383 Total bank borrowings and other loans received 2,685,412 2,132,148 At 31 December 2015 and 31 December 2014, the fair value of short-term bank borrowings and borrowings bearing floating interest rates was not materially different from their carrying amounts. The fair value of the long-term borrowings bearing fixed interest rate is estimated based on expected cash flows discounted at a prevailing market interest rate. At 31 December 2015, the fair value of the borrowings was less than their carrying amount by US$ 567 thousand on the net basis (31 December 2014: fair value was less than their carrying amount by US$ 42,107 thousand). Under the terms of the loan agreements, the Group is required to comply with a number of covenants and restrictions, including the maintenance of certain financial ratios and financial indebtedness and cross-default provisions. The Group was in compliance with covenants at 31 December 2015 and 31 December 2014. Interest rates and outstanding amounts of major loans and borrowings In November 2015, the Group signed a 5-year loan facility of EUR 200 million bearing a floating interest rate and maturing in November 2020. As at 31 December 2015, the outstanding amount was EUR 200 million (31 December 2014: nil). In September 2015, the Group signed a pre-export finance club facility of US$ 750 million bearing interest at 1-month Libor +3% and maturing in September 2019. As at 31 December 2015, the outstanding amount was US$ 750 million (31 December 2014: nil). In 2014, the Group signed a US$ 100 million uncommitted credit facility bearing a floating interest rate and maturing in December 2018. In July 2015, the credit limit was increased to US$ 150 million. As at 31 December 2015 the outstanding amount was US$ 150 million (31 December 2014: US$ 100 million). In 2014, the Group signed an uncommitted credit facility with a Russian bank. The funds through this facility may be obtained in multiple currencies. During the year ended 31 December 2015 the facility was utilized and repaid several times. As at 31 December 2015, the outstanding amount was US$175 million (31 December 2014: RUB 12 billion). Strategic Report Corporate Governance Financial Statements In 2013, the Group signed a US$ 250 million 2-year loan agreement bearing a floating interest rate. In September 2015 the loan was fully repaid (31 December 2014: the outstanding amount was US$ 111,996 thousand). In 2013, the Group obtained a credit facility of US$ 1.3 billion bearing interest at 3-month Libor +1.8% and maturing in September 2018. As at 31 December 2015, the outstanding amount was US$ 1.1 billion (31 December 2014: US$ 1.3 billion). In 2011, the Group signed a RUB 20 billion 5-year non-revolving fixed-interest rate loan facility with a leading Russian bank. As at 31 December 2015, the outstanding amount was RUB 7.5 billion (31 December 2014: RUB 17.5 billion). Undrawn facilities In 2012, the Group signed a US$ 100 million framework agreement for a 2-year revolving facility bearing a floating interest rate based on Libor which was converted to a 4-year facility in 2014. In 2014, the Group signed a RUB 9.5 billion committed credit agreement for a 3-year revolving facility. The above credit facilities had no outstanding balances at 31 December 2015 and 31 December 2014, and are available to the Group. Collaterals and pledges The pre-export finance club facility of US$ 750 million was collateralized by future export proceeds of the Group under sales contracts with certain customers and additionally cash balances of US$ 31,345 thousand were held by the bank at 31 December 2015 (Note 16). At 31 December 2015 and 31 December 2014, all other bank borrowings and other loans received listed in Note 18 were not secured. EuroChem Annual Report and Accounts 2015 97
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Committed to growth 2015 ANNUAL REP
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At a glance How we measure up A glo
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Our sustaining capitals Our interre
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30 MMT of products Logistics 25% se
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Configured for superior returns Low
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16 Murmansk Kovdorskiy GOK 4 Severn
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The fertilizer industry Strategic R
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Positive long-term supply/demand ou
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Strategic Report Investing for grow
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Strategic Report Sales growth Our e
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In this section, we highlight the f
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Strategic Report EBITDA While the c
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Strategic Report Below the operatin
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Strategic Report From January 2015,
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Xxxx 01 Novomoskovskiy Azot Strateg
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Strategic Report Sales (US$m) 2,322
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Xxxx 01 Kovdorskiy GOK Strategic Re
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Strategic Report Sales (US$m) 2,185
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Xxxx 01 Usolskiy Strategic Report C
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Strategic Report EuroChem Usolskiy
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Strategic Report Corporate Governan
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Strategic Report Total Group sales
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Murmansk Iron ore concentrate Apati
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Strategic Report Data on air emissi
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Strategic Report EuroChem Northwest
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