10 Aug 2010 16:16

Sberbank approves $4.6 bln loan for RUSAL to refinance VEB debt

MOSCOW. Aug 10 (Interfax) - UC RUSAL has agreed all the terms of a proposed $4.59 billion loan from Sberbank intended to refinance the loan previously provided to RUSAL by Vnesheconombank (VEB), the Russian aluminum giant said in a press release.

The proposed loan of $4.59 billion covers the existing debt to VEB and capitalized interest. It would be for the period up to December 2013 with an option to renew for a further 1.5 years. The Sberbank loan is subject to approval by the international lenders of RUSAL.

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 two shares in MMC Norilsk Nickel , RUSAL said.