Rusal, the world’s third largest aluminium producer, has signed the mandate for a US$1.5bn syndicated credit facility. The mandated lead arrangers are ABN Amro, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas (Suisse), Calyon, Citibank, and Natexis Banque Popularies (coordinating lead arranger; transaction and syndication agent).

ABN, BNP Paribas (Suisse), Calyon and Citibank will act as bookrunners.

The loan has been provided in two equal amortising tranches, for five and seven years respectively, and will be used to refinance existing debt, which totals US$2.9bn.  The syndication is expected to commence early in June.

Commenting on the transaction, Oleg Mukhamedshin, deputy financial director at Rusal says: “This deal sets a new record for a Russian company raising funds on the international markets. The size of the loan and its maturity are unprecedented for Russian metals and mining companies. This demonstrates the growing authority and credibility of Rusal as a global company with the international banking community.”

Rizwan Shaikh, debt market director at Citigroup adds: “Arranging the transaction we will consider the huge bank interest in Rusal, which allowed the original amount sought to be increased by 40%. The loan amount and the terms of the transaction demonstrate strong confidence in Rusal from international financial organisations.”