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 the range of 1–1.5х in the long run. As at 31 December 2022, the Company’s leverage was much lower than that, at 0.68x.

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, 76% of which was in foreign currency in 2022.

In line with the investment policy designed to meet PhosAgro's investor obligations and strengthen its investment case, the investment budget shall not exceed 50% of planned EBITDA.

The record high capital investments and charitable expenses in 2022 did not affect the Company’s leverage, which remained comfortably below the net debt/EBITDA target.