Enlarged aluminum group RusAl approves deal to raise $2 bln loan

Russia's newly-created aluminum giant United Company RusAl said Thursday it had mandated international banks to arrange and underwrite a $2 billion seven-year loan facility with a two-year grace period.

United Company RusAl, which was established in March 2007 through a merger of Russian aluminum giants RusAl and SUAL and Swiss Glencore's alumina assets, intends to use the loan proceeds to refinance some unsecured bridge facilities, including the $550 mln bridge loan from Bayerische Hypo- und Vereinsbank AG, the company said in a statement.

RusAl, which accounts for 12.5% and 16% of the global aluminum and alumina markets, respectively, also intends to use the syndicated loan to refinance the group's existing debt, the statement said.

"UC RusAl is making its first entry into the syndication loan markets since the completion of the group's merger. The deal is expected to attract substantial interest and appetite among the international banking community and prove to be a success," said Oleg Mukhamedshin, the company's director for capital markets.

The loan, to be arranged by AMRO, BNP Paribas, Calyon, Citi and Natixis, will be secured by receivables from the sale of aluminum and aluminum products on world markets, the company said.