UC RUSAL announces reduction of interest margin to 4%

Metal Stocks  |  2011-06-11 03:45:28   |   By

UC RUSAL, the world's largest aluminium producer, announced the reduction in interest margin payable under the International Override Agreement (IOA) from 4.5% to 4%

MOSCOW (Scrap Monster): UC RUSAL, the world’s largest aluminium producer, announced 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.

UC RUSAL, (SEHK: 486, Euronext: RUSAL/RUAL, MICEX: RUALR, RTS: RUAL) is the world’s largest producer of aluminium, in 2010 accounting for approximately 10% and 10% of global production of aluminium and alumina, respectively.

UC RUSAL’s ordinary shares are listed on The Stock Exchange of Hong Kong Limited (Stock code: 486), global depositary shares representing UC RUSAL’s ordinary shares are listed on the professional compartment of Euronext Paris (RUSAL for Reg S GDSs and RUAL for Rule 144A GDSs), and Russian depositary receipts that are issued on common shares of the Company are listed on MICEX (RUALR) and RTS (RUAL) stock exchanges.