OREANDA-NEWS. RUSAL, the world's top-three aluminium producer, announces the successful completion of a deal to secure a syndicated loan of USD 500 mln to bring the Khakas Aluminium Smelter up to full capacity and refinance the previously secured loans.

According to the press service of RUSAL, the deal is a rare example of a classic project finance scheme in Russia. The loan has a 12 year term and will be repaid with the profit from product sales.

The loan rate depends on the pay-back term and equals LIBOR +1,2% within the first three years. BNP Paribas is the loan organiser and bookrunner. The following banks joined the transaction in the syndication phase - Calyon, BLB, HSBC, Mizuho, Natixis, Sberbank of Russia, SG and SMBC.

As part of the process to organise the loan, BNP Paribas engaged independent consultants, who have confirmed that the project meets the Equator Principles. This shows that the project fulfils the requirements of national and international law in the field of environment, health and safety. As of today, 45 of the largest international commercial banks have signed up to the Equator Principles used to evaluate projects applying for project financing of more than USD 50 million.