Rusal and Sberbank agree on improving terms of the USD4.58 billion loan facility

Rusal and Sberbank of Russia announce reaching the agreement to improve the key terms and conditions of the loan facility of USD4.58 billion signed on 30 September 2010.

According to the amended terms, the debt maturity will be extended such that the debt will mature 5 years from the date of signing the amendments (i.e. up to 2016). Besides, under new conditions, the guarantee of Vnesheconombank (VEB) amounting to USD2.25 billion will be terminated.

VEB’s loan to Rusal, amounting to USD4.5 billion, was agreed in November 2008 and was used to repay the loan obtained in April 2008 from a syndicate of banks to finance the cash component of the acquisition of 25% plus 1 share of MMC Norilsk Nickel. In October 2010, such loan was refinanced by Sberbank.

The amendments have been approved by the credit committee of Sberbank and are subject to approval by the board of directors of Rusal. The signing of the relevant documentation and the agreement is expected in the near future.