Sberbank lowering interest on $4.5-bln Rusal loan
MOSCOW. Aug 16 (Interfax) - Aluminum giant UC Rusal and Sberbank have reached an agreement to improve the key terms and conditions of the loan facility of $4.58 billion signed on September 30, 2010, Rusal said in a statement.
According to the amended terms, the debt maturity will be extended such that the debt will mature five years from the date of signing the amendments (i.e. up to 2016) instead of in December 2013.
Interest on the loan will be lowered to LIBOR+4.5% from LIBOR+5%.
Also, under new conditions, the guarantee of Vnesheconombank (VEB) amounting to $2.25 billion will be terminated.
VEB's loan to Rusal, amounting to $4.5 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.
Oleg Mukhamedshin, UC Rusal Director for Equity and Corporate Development said: "The reached agreements strongly improve the corporate debt profile and enable us to cut debt service expenses. The improvement of the Sberbank loan is one of the stages of Rusal's full debt refinancing which is expected to close by the end of September this year."