OREANDA-NEWS. November 20, 2007. UC RUSAL, the world's largest aluminium and alumina producer, announced the completion of a deal to attract a long-term syndicated credit facility. This is the first syndicated credit of this size received by the group following the creation of United Company RUSAL, the company's press service reports.

A syndicate of banks was mandated in June to arrange the facility.  During syndication, the deal attracted a large volume of requests for participation from international banks, resulting in a decision to increase the size of the facility. The original amount sought was $2.0 billion and this was increased to $2.35 billion to accommodate demand.

The loan is provided for seven years with a two year grace period before amortization. The average interest rate of LIBOR+0.8%, which was agreed prior to syndication, is unprecedented in current financial  markets. Oleg Mukhamedshin, Director, Capital Markets, commenting on the deal, said: "The deal to attract the first long-term syndicated facility after the creation of United Company RUSAL has demonstrated the strong credibility that the group has established with leading international banks. Despite the credit crisis, we have successfully closed the deal at the price set before recent market turmoil and achieved a significant level of oversubscription."

The funds will be used to refinance the existing debt of UC RUSAL companies and optimize the group's credit portfolio.

The Initial Mandated Lead Arrangers of the facility were ABN Amro, Barclays, BNP Paribas, Calyon, Citi, ING, Natixis, SocGen. ABN Amro, BNP Paribas, Calyon, Citigroup, Natixis acted as bookrunners.  ABN Amro was appointed Documentation and Facility agent, while Natixis acted as Offtake agent.  Bank of Tokyo-Mitsubishi UFJ Ltd., Bayerische Landesbank, Bayerische Hypo- und Vereinsbank AG, Commerzbank AG, Sumitomo Mitsui Banking Corporation have joined the transaction as Co-mandated Lead Arrangers ahead of the launch of the general syndication which closed oversubscribed with additional banks joining in the general syndication phase.

"United Company Rusal has assembled a strong group of Mandated Lead Arrangers and has been able to draw upon a significant amount of liquidity at a time when the credit markets have been extremely volatile and challenging for companies wishing to raise capital. The success of this facility is a reflection of the Company's elevation to the global league of metals and mining bluechip corporates," said David Hague, Director, Global Markets, ABN AMRO Bank N.V.

"We never doubted the success of this syndication. UC RUSAL is a clear proof that first class names continue to have strong following even in today's challenging market environment.  A memorable debut," said Enna Pariset, Managing Director, Head of Metals & Mining Investment Banking Russia/CIS, BNP Paribas (Suisse) SA.