Norilsk Confirms It Has Mandated Banks For Up To $1.5 Billion Loan

Russian Polar miner OAO Norilsk Nickel (GMKN.RS) said Friday it has mandated banks to arrange an up to $1.5-billion loan with a five-year maturity.

Interfax news agency reported earlier in the day the miner was going to spend the loan on its share buyback.

However, in a press release Norilsk didn't elaborate on what it will spend the raised funds, and the company's spokeswoman declined to comment when asked.

Norilsk, the world's largest nickel and palladium producer, launched the buyback at $306 a share Sep.28, and said it is ready to spend up to $4.5 billion to buy back up to 7.71% in the company.

Norilsk said it has mandated Citigroup Inc. (C) and Societe Generale S.A. (GLE.FR) for the loan, for which it will use export revenue as collateral.

The miner has previously said in the buyback offer memorandum it planned to obtain external financing of up to $3.5 billion to fund the buyback.

-By Nadia Popova, Dow Jones Newswires; +7 495 232-9198, nadia.popova@dowjones.com

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