Norilsk Nickel has begun work on its Eurobond issue, appointing investment banks Citigroup and Morgan Stanley as lead managers.

The two institutions will help the Russian pgm giant raise funds through the bond issue, which will be used to repay debt and provide funds for investment.

In a statement the firm announced: "Norilsk Nickel has mandated Citigroup and Morgan Stanley as joint bookrunners for a planned debut issuance of US dollar denominated Eurobonds to be launched in the near future."

The bonds will be issued at an as yet undecided date, with Norilsk beginning the process of evaluation next week.

No details on the size of the bond issue have been released yet, but Norilsk did say it would be open to investors outside the US.