Moscow, 17 December 2003: SUAL, one of the world’s top ten aluminium producers, today announced that it has secured a USD 400m loan through a syndicate of international lenders led by BNP Paribas, HVB, ING, Natexis, SG CIB, and WestLB as Mandated Arrangers with Commerzbank and Standard Bank London as Lead Arrangers.
The secured loan facility, with a margin of 2.5 per cent over LIBOR, was signed yesterday. It has a three-year tenor with amortisation following a 12-month repayment grace period. This is the largest loan secured by SUAL in its history. Chris Norval, President of SUAL Holding, stated that: “The scale and terms of this loan set a new benchmark for debt finance in the Russian metals industry, demonstrating the international capital market’s view of the quality of SUAL’s strategy, management and prospects.”
Iosif Bakaleynik, Senior Vice President for Finance and CFO of SUAL Holding, added that: “The loan enables SUAL to refinance its debt at significantly lower interest levels and repositions the company for future participation in the global capital markets. We now enjoy a cost of debt capital more in line with our competitors in emerging markets, and have strengthened our relationships with mainstream lenders to the industry.”
ING is acting as Bookrunner for this transaction and said that the loan, originally planned at USD 300m, was very well supported at the Mandated Arranger stage with six major international banks joining together to form an underwriting group, and two further banks joining the facility prior to general syndication. As a result, the facility was increased to USD 400m at the underwriting stage.
General syndication will follow in January 2004.
SUAL is Russia’s largest bauxite and alumina producer and second largest primary aluminium producer.