RUSAL completes debt refinancing

RUSAL, the world’s largest aluminum producer announced the refinancing of its debt portfolio totaling USD 11.4 billion.

During the refinancing process, the Company has taken out its outstanding debt under the international facilities governed by the International Override Agreement entered into by RUSAL and international lenders on 7 December 2009, to the amount of USD 4.34 billion and Onexim Group liabilities to the amount of USD 552 million. The repayment was made on October, 5th 2011 using mainly the USD 4.75 billion syndicated facility arranged by international and Russian lenders. The book runners and mandated lead arrangers of the facility are BNP Paribas (Suisse) SA, ING Bank N.V., Commerzbank Aktiengesellschaft, Credit Agricole Corporate and Investment Bank, Gazprombank, Natixis, Nordea Bank AB (publ), The Royal Bank of Scotland Plc, Sberbank of Russia, Sumitomo Mitsui Banking Corporation, SGCIB, UniCredit Bank AG and WestLB AG. The facility is to be joined by other international financial institutions that confirmed their participation in the course of syndication.

In addition, RUSAL has completed a refinancing of Sberbank of Russia loans up to USD 460 million with a five year maturity.

The Company has also signed an agreement with Gazprombank on a new loan facility up to USD 655 million with a five year maturity. The planned drawing has already started.

On September 23rd 2011, the Company and Sberbank of Russia signed an amendment to its USD 4.58 billion loan agreement effective immediately. This amendment extends the maturity of the loan until September 2016 and cancels the Vnesheconombank (VEB) guarantee.

RUSAL has also refinanced USD 1.1 billion debt, issuing two series of ruble bonds in March 2011 and April 2011 (maturing in March 2014 and April 2015 respectively).

As a result of the refinancing RUSAL's average annual interest rate will reach 4.6%.