HydroOGK and RUSAL announce the successful closing of a deal to secure a bridge-loan of USD 520 mln to finance the Boguchanskoye Energy and Metals Complex project

HydroOGK, the leading renewable energy producer in Russia, and RUSAL, the world’s top-three aluminium producer, announce the successful closing of a deal to secure a bridge-loan of USD 520 mln to finance the Boguchanskoye Energy and Metals Complex project.

The loan is granted for a period of 3 years with an average interest rate of LIBOR plus 0.825% per year. ABN Amro, Calyon, Barclays, and Sberbank of Russia are the originators and underwriters of the loan.

The attracted funds will be used to finance the construction of the Boguchanskiy Aluminium Smelter and completion of the Boguchanskaya Hydropower Plant. The intention is that this loan will be refinanced through another long-term loan which is currently in the negotiation stage.

HydroOGK and RUSAL plan to invest approximately Rub 10 bln in 2007 in the Boguchanskaya HPP and approximately USD 5 bln in the Boguchanskiy Smelter. The HPP project for 2007 includes construction works, laying of 300,000 cubic metres of concrete, 4 mln cubic metres of earth works on the main facilities of the Boguchanskaya HPP, completion of the reconstruction of the production base for the works, and selection of suppliers of the core hydrotechnical equipment. The aluminium smelter construction includes the completion of basic engineering and design works, as well as signing of contracts to supply principal equipment.