Rusal, the world’s second largest aluminium company, has received a new US$100mn bilateral credit facility from Credit Suisse First Boston (CSFB). Proceeds under the facility will be used to finance the production and export of primary aluminium by Rusal.

The facility has been provided for five years, which is to date the longest tenor in the Russian metals sector. This demonstrates improved creditworthiness in the Russian metals sector and, in particular, confidence in Rusal within the international financial community.

The facility will be repaid in equal quarterly instalments after a grace period. The loan security includes assignment of a long-term sales contract with Hydro Aluminium.

Oleg Mukhamedshin, Rusal’s corporate finance director, says that the CSFB deal sets a new benchmark for the Russian metals industry.

The company accounts for 75% of Russia’s primary aluminium output and 10% of the global primary aluminium output. Rusal is a fully vertically integrated company with a complete production cycle from bauxite mining and the production of raw materials, to the production of primary metal, semi-products and aluminium-based end products.