RUSAL has settled fee to its international lenders

Friday, 05 February 2010 17:32

RUSAL, the largest aluminium and alumina producer, announces that the Company has paid its creditors USD2.143 billion from the proceeds of its share listings on the Hong Kong Stock Exchange and NYSE Euronext in Paris.

The proceeds have been used to repay principal debt owed by the company to its international and Russian lenders (excluding VEB) as well as principal debt and accrued interest to Onexim Group. In addition, RUSAL has settled fee to its international lenders in connection with the debt restructuring.

The funds have been allocated as follows:

International lenders – USD1.46 billion

Russian lenders (excluding VEB) – USD253 million

Onexim Group – USD278 million

International lenders fee – USD152 million

As a result of the debt repayments RUSAL’s total outstanding debt including debt owing to Onexim was reduced to USD12.9 billion.

These debt repayments to the company’s international and Russian lenders exceed the debt repayment target till the end of 2010. These repayments allowed the company to make progress towards meeting its next debt repayment targets, with USD3.3 billion remaining to be repaid to the banks for the company to meet the target due by the end of 2013.

“The successful IPO helped the Company to raise funds that allowed us to significantly reduce our debt. We are confident that the right choice of strategy to overcome the consequences of the global economic downturn and the strengthening of our competitive advantages will enable us to pay off the remaining debt in the shortest possible term to provide for the active development of RUSAL and increase of the company’s value in the interests of all our shareholders,” Oleg Mukhamedshin, RUSAL’s Director for Capital Markets.

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