Right now our effective rate across the empire poke calgary whole loan portfolio is a little more than 3, and this includes all the casino 8 mai 1945 commissions and banking fees.
TFM: Will you be using PXFs or bonds?
It is not just a question of significant cash flow and liquidity, it is also about our corporate governance.TFM: Can you tell me more about your.2 billion PXF that was signed in September 2011.On the cost side we analysed the potential savings and we came up with the conclusion that the synergy on the cost saving could be made in every sphere starting from logistics to administration as well as financial functions.TFM: Will you use ECA financings for these deals?The usual utilisation rate is 80 or 90 which is ok because it allows you to maintain the equipment.The official target is 100 million in savings per year for the foreseeable future.TFM: How much cash do you have on your books?Buyback is also a way of adding value to our shareholders.That is partly why the expansion is very cheap for Uralkali.VB: I think now is not the best time to come to the debt capital market so it could be a PXF but we also have some rouble loans from Russian banks.The main issue was get best practices from both companies and achieve synergies in all spheres.
We have actually done quite a few PXFs in the last few years, mostly with Societe Generale.
We have already re-considered our dividend policy, right now our official policy is to distribute no less than 50 of net income to the ifrs statement, we will do it twice a year.
Moreover, Silvinit had its own loan from Sberbank which was very expensive.TFM: Could you summarise the companys position to date?The legal advisors on the deal were Debevoise.You are already one of the most cost-efficient producers.For the brownfield capex it will cost us just a little over 420 per tonne and for greenfield capex it will cost us around 750 per tonne.Our expansion will now be one of the most efficient in the industry because the cost of additional tonnes is very cheap, especially for our brownfield expansion.Both banks led the deal.Both deals used our Swiss incorporated trader, Uralkali Trading.TFM: Can you tell us more about your.8 billion 10-year expansion programme?The construction of the mines is still some way away, the shafts of the mines will only be ready by 2017.