Debt repayment remains a priority over dividends and excessive CAPEX. EVRAZ was able to reduce net debt by US$0.5 billion in 2016, in addition to the US$0.5 billion reduction in 2015.
- Despite reducing the net debt level, net leverage level remains high.
- EVRAZ continues to target to reach a long-term ratio of 2.0x.
EVRAZ debt instruments are denominated predominantly in US dollars. Fluctuations of Russian rouble and Euro affect approximately 13% of debt.
Over the last couple of years, EVRAZ was able to increase average debt maturity from 2.9 years to 3.3 years thorough a series of refinancing actions for bonds as well as loan facilities.
Interest payments have been reduced by more than US$100 million over the last three years due to the reduction of the total debt level.