Russia's Rusal amends maturity and interest of $4.58 billion facility

By Marisa Wong

Madison, Wis., Aug. 16 - United Co. Rusal plc announced that it reached an agreement with Sberbank of Russia to amend the key terms and conditions of its $4.58 billion loan facility signed on Sept. 30, 2010.

According to the amended terms, the maturity of the facility will be extended to 2016. Interest will be reduced to Libor plus 450 basis points per year.

In addition, Bank for Development and Foreign Economic Affairs (Vnesheconombank)'s guarantee of $2.25 billion will be terminated.

Vnesheconombank's loan to Rusal of $4.5 billion in November 2008 was used to repay a loan obtained in April 2008 from a syndicate of banks to finance the cash component of the acquisition of 25% plus 1 share of Norilsk Nickel. In October 2010, the loan was refinanced by Sberbank.

The company said that the amendments have been approved by Sberbank's credit committee and will be approved by the company's board of directors.

Rusal is an aluminum company based in Moscow.

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