Rusal makes debt repayments totalling USD119 million

UC Rusal announced making further debt repayments in the total amount of USD119 million to its international and Russian lenders, including Onexim group, under the International Override Agreement (IOA).

The debt repayment was made on 29 June 2011. Since the beginning of 2011, Rusal has already paid the amount of USD1.7 billion, including refinancing from the proceeds derived from the recent successful ruble bond issue. The amount repaid by the Company to the lenders since the Override date (excluding repayments made under the refinancing of the VEB loan) totalled USD4.3 billion.

Rusal makes debt repayments ahead of schedule and actively uses new tools to raise capital, which helps the Company to reduce debt service costs and to improve the debt structure.

Oleg Mukhamedshin, UC Rusla Director for Financial Markets, said: ‘RUSAL stays on the firm ground, generates a strong cashflow and makes debt repayments under IOA ahead of schedule. The solid position of the Company allows us to anticipate the full refinancing of the existing debt by September this year, which will lower the interest expenses, improve debt structure and let the Company consider a possibility of paying dividends.’