Standard Bank London Limited, as mandated arranger and facility agent together with Citibank and Commerzbank as co-arrangers have completed a US$60mn four-year structured term loan facility for Sual Group, Russia’s largest bauxite and alumina producer and second largest primary aluminium producer.
The loan will finance an expansion project at Uralsky Aluminium Smelter, Sual’s second and Russia ‘s third largest alumina facility by output, with production of some 700,000 tonnes of alumina and more than 90,000 tonnes of aluminium in 2002. The smelter is already benefiting from an ongoing investment and modernisation programme.
Sual Group extracts 4mn tonnes of bauxite, refines 2mn tonnes of alumina, produces 865,000 tonnes of primary aluminium, about 50,000 tonnes of silicon and 105,000 tonnes of aluminium fabricated products annually. Sual’s product range includes alumina; primary aluminium; wrought and foundry alloys; extruded products shapes, panels, bar, rod, tube, pipe, wire; forged products forgings, stampings, rolled wheels, cookware, foil, metallurgical powders, cable, silicon and other products.
“The deal sets a new benchmark for finance provided by western banks to Russian non-ferrous metal producers. Whilst tenors of this kind have been seen for the Russian oil producers this is one of the first long-term loans in the Russian metal industry,” says Natasha Isakova of Standard Bank London Ltd.