OREANDA-NEWS. November 1, 2012. UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUALR/RUALRS), the world’s largest aluminium producer, announces that the Company has reached an agreement with its lenders on the extension, until the end of 2013, of the period during which financial covenants under the USD4.75 billion syndicated facility arranged by international and Russian lenders are not to be tested.

During 2012 the Company has developed an optimal strategy for liquidity management and mitigation of financial risks, which has enabled the Company to maintain its strong liquidity position despite the volatility experienced in the commodity and financial markets. The agreement announced today demonstrates the lenders’ continued support of the conservative risk management approach adopted by the Company.

RUSAL, moreover, continues to implement its cost optimization programmes as well as the implementation of tighter controls over its investment programmes.

As a result the Company has been able to generate additional cash and intends to make an early repayment of amortizations due in 2013 amounting to no less than USD406 million. This early repayment will be made by the end of 2012, and will include approximately USD300 million of the Company’s own cash with the remaining amount to be forthcoming from available credit lines. This early repayment will reduce the Company’s debt burden and associated refinancing risks. Accordingly, the amount due for payment under the existing credit facilities in 2013 will reduce from USD1.3 billion to USD900 million mainly payable in the second half of 2013.

In line with its conservative strategy of debt portfolio management, the Company continues to work to ensure a sufficient amount of available credit lines, which if necessary could be used to refinance the remainder of the payments in 2013, and already has significant support from its international and Russian lenders.