Prime-Tass Business News Agency 2005
April 11, 2005

Russia’s RusAl gets 46.6 mln euro loan from Germany’s BayernLB

MOSCOW, April 11 (Prime-Tass) — Russia’s leading aluminum producer
RusAl has received a 46.6 million euro loan from Germany’s Bayerische
Landesbank (BayernLB) to fund an upgrade of the RusAl Armenal foil
mill, RusAl said in a press release Monday.

RusAl Armenal is an Armenia-based subsidiary of RusAl.

RusAl and German export loan agency Euler Hermes are the guarantors
of the loan, the press release read.

BayernLB is to provide the loan in two parts: an initial, 6.99
million euro 3.5-year loan, and a second, 39.61 million euro 8.5-year
loan.

“The loan raised by RusAl is important not only in terms of the
company’s business development in the region – it’s a landmark
development for Armenia’s economy,” RusAl’s Chief Financial Officer
Vladislav Solovyov said, as quoted in the press release. “BayernLB
has pioneered business lending in the republic and we hope that other
members of the international banking community follow this example,”
he said.

The first stage of the upgrade project is expected to be completed in
autumn 2005. As a result of the upgrade, the mill’s annual production
capacity is expected to reach 25,000 tonnes of foil. According to the
press release, Armenal will focus on thin foil (six to seven microns
thick) production. As a result of the upgrade, the plant’s annual
thin foil output is expected to amount to 18,000 tonnes.

“Armenal’s renovation is one of the largest investment programs in
the Armenian economy,” Armenia’s Trade and Economic Development
Minister Karen Chshmaritian said, as quoted in the press
release.”Thanks to RusAl’s efforts, Armenia will soon acquire a
state-of-the-art foil rolling plant. The economic effect of
BayernLB’s loan, secured with the help of the Russian company, will
significantly improve the investment climate in our republic,”
Chshmaritian added.

In October 2004, RusAl signed an agreement with German rolling mill
manufacturer Achenbach to commence Armenal’s upgrade. The total
investments in the mill’s upgrade are expected to amount to 70
million euros. End