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. Last Updated: 07/27/2016

Norilsk Closes Deal for $3.5Bln Loan

Norilsk Nickel has closed two syndicated loans worth $3.5 billion for its acquisition of Canada's LionOre Mining International, the firm said Monday.

Norilsk said that the loans were part of a $6 billion finance package arranged by BNP Paribas and Societe Generale and signed June 22.

Norilsk acquired LionOre, the world's 10th-largest nickel miner, for 6.8 billion Canadian dollars ($6.45 billion) after outbidding Xstrata.

The acquisition will allow Norilsk to become the first company to produce in excess of 300,000 tons per year of nickel, a metal used in stainless steel, and to spread geographically through LionOre assets in Australia, South Africa and Botswana.

Norilsk said the first syndicated loan, for $2 billion, was a five-year pre-export finance facility and the second a $1.5 billion three-year dual-tranche unsecured term loan and revolving credit facility.