In 2011, the JSC “MOESK” credit policy focused on the compliance of the Company’s debt limits with the conditions defined in the Provision on the Credit Policy. The Company’s creditworthiness complied with the “A” group during the reporting period. The Company managed to optimize the use of borrowed funds by utilizing revolving lines of credit.
In accordance with its need for cash in 2011, the Company attracted a total of 17,830 million rubles in borrowed funds (in addition to refinancing under revolving lines of credit – 24,767 million rubles).
« IN ACCORDANCE WITH ITS NEED FOR CASH IN 2011, the COMPANY ATTRACTED A TOTAL Of 17,830 MILLION RUBLES IN BORROWED FUNDS (IN ADDITION TO REFINANCING UNDER REVOLVING LINES OF CREDIT FOR 24,767 MILLION RUBLES) »
The total amount repaid:
- loans for a total of 4,983 million rubles;
- the Company’s own redeemed promissory notes for a total of 1,119 million rubles;
- a bond issue for a total of 2,357 million rubles.
As of 31 December 2011, debt on loans and borrowings taking into account accrued interest totaled 40,426 million rubles, including:
- 1,321 million rubles on short-term credit obligations.
- 39,106 million rubles on long-term credit obligations.
Structure of liabilities,
Dynamics of weighted average rate for the servicing of borrowed funds, %
Structure of loan portfolio as of December 31, 2011
|* several agreements concluded with the Creditor on borrowed funds with the duration indicated for the most long-term agreement.|
|№||Creditor||Weighted average rate, %||Duration of loan agreement, year||Amount of borrowed funds,
|4.||Bank of Moscow||9.00||2012*||1,296|
Due to the deteriorating situation on international and domestic financial markets in the fourth quarter of 2011, the interest rates increased on all open lines of credit from JSC “Alfa-Bank” by 1.88%-1.99%, which led to an increase in the weighted average rate.
Key financial indicators
|* Net debt = Debt on long-term and short-term loans and borrowings + outstanding debt for leasing – cash balance on transaction accounts.|
|1.||Net debt, mln rubles*||57,138||42,930||43,944|
|4.||Share of equity in liabilities, %||48||56||58|
In 2011, the Company’s net debt totaled 43,944 million rubles, which is higher than the level recorded in 2010. The increase is attributable to growth in debt on loans and borrowings.
The net debt/EBITDA ratio was 1.11. The reduction in this indicator compared to 2010 resulted from the higher level of growth in EBITDA (10%) compared to the growth in net debt (2%).
The EBITDA/outstanding interest ratio was 15.38 in 2011. Positive dynamics were seen in this indicator compared to 2010.
The share of equity in liabilities ratio was 58% in 2011. The growth in this indicator demonstrates the Company’s financial stability.