Debt management

The Company uses a conservative approach to leverage and believes that a comfortable net debt/EBITDA ratio should be below 2х or even within a range of 1–1.5х in the long run. When determining its borrowing requirements, the Company assesses the cost of borrowing from banks and public debt markets, the amount and maturity available while striving to ensure that this fits into the Group’s long-term debt reduction strategy. The choice of the currency of borrowings is based on the structure of the Company’s revenue, 70% of which is in foreign currency and the rest is strongly correlated with US Dollar exchange rate.

Bonds

Borrower	PJSC PhosAgro	PJSC PhosAgro	PJSC PhosAgro
Issuer	PhosAgro Bond Funding Limited	PhosAgro Bond Funding Limited	PhosAgro Bond Funding Limited
Settlement date	3 May 2017	24 January 2018	23 January 2020
Principal outstanding, USD	500,000,000	500,000,000	500,000,000
Guarantors	Apatit, PhosAgro-Cherepovets	Apatit	Apatit