Bloomberg News

Rusal Says Extra Collateral on $4.5 Billion Loan Is Possible

November 06, 2008

United Co. Rusal, the world's largest aluminum producer, said it may need to pledge extra collateral on a $4.5 billion loan from the Russian government should the value of the securities already pledged decline in value.

Rusal already backed the loan with a 25 percent stake in OAO GMK Norilsk Nickel. Given that the shares are increasing in value, extra collateral is unlikely to be needed, Rusal spokeswoman Vera Kurochkina said in an e-mail. Norilsk has gained more than 78 percent in Moscow trading since Oct. 28.

Moscow-based Rusal may pledge stakes in its Krasnoyarsk and Sayanogorsk smelters as additional collateral, Vedomosti reported today, citing an unidentified company official.

To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net.

To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net.


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