Rusal announces opening of book with respect to ruble bond issue by Rusal Bratsk

RUSAL the world's largest aluminium producer, announces the opening of book with respect to the second tranche, Series 08, of the ruble bond issue by OJSC RUSAL Bratsk in the amount of 15 billion rubles.

Series 08 is represented by 15 million of bonds with a par value of 1,000 rubles each. The book is expected to close on or about 14 April 2011. The initial marketing coupon range is envisaged at 8.7-9.0% p.a. The bonds are also expected to be subject to a put option of not earlier than four years. The placement of the bonds on MICEX is scheduled to commence on or about 18 April 2011. The issue by OJSC RUSAL Bratsk of ruble bonds in the amount of 30 billion rubles was registered by the Russian Federal Service for the Financial Markets on 20 May 2010.

The first tranche, Series 07, was successfully placed on MICEX on 3 March 2011. The deal attracted a significant interest from the investors. The overall demand for the bonds exceeded 35 billion rubles with over 100 of orders received. Due to demand significantly exceeding the planned placement volume RUSAL was able to consequently lower the price guidance from the original 9-9.5% to 8.5-9% and then to 8.3-8.5% p.a. Finally, the book was closed at the lower end of the price range.

The ruble bond issue is the first and a very important milestone in the refinancing of the Company’s current debt, reducing overall debt service costs and improving its structure.