UC RUSAL the world's largest aluminum producer announced 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 RUB 15 billion.

Series 08 is represented by 15 million of bonds with a par value of RUB 1,000 each. The book is expected to close on or about April 14th 2011. The initial marketing coupon range is envisaged at 8.7% to 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 April 18th 2011. The issue by OJSC RUSAL Bratsk of ruble bonds in the amount of RUB 30 billion was registered by the Russian Federal Service for the Financial Markets on May 20th 2010.

The first tranche, Series 07, was successfully placed on MICEX on March 3rd 2011. The deal attracted a significant interest from the investors. The overall demand for the bonds exceeded RUB 35 billion 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% to 9.5% to 8.5% to 9% and then to 8.3% to 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.

(Sourced from www.metalinfo.ru)