Bloomberg News

Uralkali May Seek Dollar Loans for Investments, Belyakov Says

October 26, 2011

Oct. 26 (Bloomberg) -- OAO Uralkali, the world’s biggest potash producer, plans to raise its debt level and prefers dollar loans to fund its investment program, Chief Financial Officer Victor Belyakov said.

“Banks are acting cautiously, but good-quality borrowers like us have access to loans,” Belyakov told reporters today at an Adam Smith CFO conference in Moscow. The Berezniki, Russia- based fertilizer company is looking at dollar loans to match revenue and as pricing in the bond market remains high because of market “nervousness,” he said.

Uralkali’s optimal capital structure is as much as 30 percent debt to 70 percent equity, Belyakov said. The company now has about 20 percent debt, he said.

The effective interest rate on Uralkali’s borrowing is now about 3 percent, he said.

--Editors: Torrey Clark, Alex Devine

To contact the reporter on this story: Ilya Khrennikov in Moscow at

To contact the editor responsible for this story: John Viljoen at

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