Rusal secures fresh 4.6 billion dollars credit

10th August 2010, Comments 0 comments

The world's largest aluminium producer Rusal said Tuesday it has secured a credit line of 4.6 billion dollars (3.5 billion euros) from Russia's largest bank Sberbank to cover debt repayments.

"The proposed credit of 4.59 billion dollars covers the debt and interest due to VEB" for a bank loan taken out in 2008, Rusal said in a statement.

The Sberbank credit runs until December 2013 and can be extended for 18 months.

The arrangement is subject to approval by Rusal's international creditors.

Rusal has been buffeted by the global economic slump which slashed demand for its products but it returned to profit in the first quarter with earnings of 247 million dollars after what it said was "one of the toughest years" on record for the aluminium industry.

The VEB loan was extended to Rusal under an accord to help Russian companies generally as they struggled to survive the global meltdown, with the money used in turn to cover its purchase of a 25 percent stake in mining giant Norilsk Nickel.

In December last year, Rusal reached agreement with its creditors on restructuring massive debts of 16.8 billion dollars, clearing the way for a listing of its shares in Hong Kong.

© 2010 AFP

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