Rusal announces that book with respect to ruble bond issue is closed with over 2 times oversubscription

Rusal, the world's largest aluminium producer, announces the closing on 1 March 2011 of book with respect to ruble bond issue, Series 07, by OJSC Rusal Bratsk in the amount of 15 billion rubles at a coupon rate of 8.3% p.a.

The deal attracted a significant interest from the investors. The overall demand for the bonds exceeded 35 billion rubles with over 100 of orders received. Due to demand significantly exceeding the planned placement volume Rusal was able to consequently lower the price guidance from the original 9-9.5% to 8.5-9% and then to 8.3-8.5% p.a. Finally, the book was closed at the lower end of the price range.

The issue by OJSC Rusal Bratsk of ruble bonds series 07 was registered by the Russian Federal Service for the Financial Markets on May 20, 2010. Series 07 is represented by 15 million of bonds with a par value of 1,000 rubles each. The tenor of the series 07 is seven years with the put option at three years. The coupon period is 182 days. Placement of the issue on MICEX is scheduled to commence on the 3 March 2011.

‘This bond issue marks the Company’s return to public debt capital markets. We see the issue to be very positively received by the market, as evidenced by an over two-times oversubscription. The issue size is large by ruble bond markets standards and significant demand further confirms the high level of confidence from investors in Rusal’ said Oleg Mukhamedshin, Director of Capital Markets, Rusal.

The ruble bond issue is the first and a very important milestone in the refinancing of the Company’s current debt, reducing overall debt service costs and improving its structure.