Russia's UC RUSAL said that it won concessions on the terms of a newly agreed loan, giving it some breathing space as weak prices for the light metal sap its ability to generate cash.

Hong Kong listed RUSAL in a statement said that the agreement gave it the option to introduce a 12-month covenant holiday, starting from any quarter in 2012, and that the deal would "better reflect the global market environment.

With aluminium prices on the way down, RUSAL surprised its lenders in December with a request for a covenant holiday on a USD 4.75 billion pre export syndicated loan just nine weeks after the deal was signed.

Aluminium prices ended last year near 18 month lows on concerns about economic weakness and oversupply, prompting Alcoa Inc to announce the closure of higher-cost European smelters.

RUSAL, responsible for around 10% of world primary aluminium output, has maintained it is safely clear of the high-cost bracket and made no indication it plans to idle smelters, even as traders beg for global cuts to put a floor under prices.

(Sourced from Reuters)