Rusal completed refinancing of VEB loan

The credit facility provided by Sberbank covers the debt to VEB and capitalized interest. The new loan is for the period up to 7 December 2013, with an option to renew for a further 1.5 years, at an interest rate of LIBOR+5%.
Commenting on the deal, Oleg Mukhamedshin, Rusal’s Deputy CEO and Director of capital markets, said: «Refinancing the VEB loan was the final step in a comprehensive program to restructure our loan portfolio. We have succeeded in achieving long-term agreements with all our creditors under conditions which will help to ensure the stable development of the company and provide opportunities for strengthening its competitiveness. Lower debt and interest rate will be a strong contribution to it.»

VEB’s loan to Rusal, amounting to USD 4.5 billion, was agreed in November 2008 and was used to repay the loan obtained in April 2008 from a syndicate of foreign banks to finance the cash component of the acquisition of 25% of Norilsk Nickel.

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