Rusal Agrees $655 Million Credit Line With Gazprombank, $460 Million With Sberbank

MOSCOW -(Dow Jones)- United Co. Rusal PLC (0486.HK), the world's biggest aluminum producer, said Monday it had agreed an up to $655 million credit line with Gazprombank (GZPR.RS) and a $460 million credit line with OAO Sberbank (SBER.RS), both of which it would spend to refinance its debt to the corresponding banks.

Rusal said earlier in the day it was on track to refinance all of its debt within the next four weeks, after which the company will be in a position to start paying dividend. Rusal's net debt stood at $11.43 billion as of June 30.

The Gazprombank's credit line will mature in December 2016, and will have an interest rate of 4.5% over the three-months London interbank offered rate. The Sberbank's credit line will mature five years from the signing of the necessary documents and have an interest rate of 4.5% over the one-year Libor.

Earlier in August Rusal reduced the interest rate on Sberbank's $4.58 billion loan facility, and changed the debt's maturity to five years from the date of signing the amendments, compared with its original plan of a three-year maturity due Dec. 7, 2013.

Rusal has also mandated banks to arrange an up to $4.75 billion pre-export finance facility, which the company said could be increased to up to $5 billion.