OREANDA-NEWS. June 10, 2011. UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, MICEX: RUALR, RTS: RUAL), the world’s largest aluminium producer, announces the reduction in interest margin payable under the International Override Agreement (IOA) from 4.5% to 4%.

The reduction in the interest margin in accordance with the IOA has been triggered by the Total Net Debt to covenant EBITDA ratio falling below 4:1 based on the Company’s results for the first quarter of 2011. Also the share of capitalized interests reduced from 2.25% to 1% in favor of the interests paid in cash (from 2.25% to 3%). In accordance with the IOA, the changes come into force from the beginning of the new interest period starting June 10, 2011. The total decrease in the Company’s interest margin since December 2009 has now reached 43%.

“RUSAL continues to make debt repayments ahead of schedule and actively uses new tools to raise capital. We are now on a final stage of debt refinancing approval which enables the Company to remove restrictions on making investments and developing new projects. The Company is actively working on deleveraging and capital structure improvements”, said Oleg Mukhamedshin, UC RUSAL Director for Capital Markets.