United Company RUSAL was given a $4.5bn loan from VEB, the development and foreign trade bank, in order to pay off the loan the company had taken from a syndicate of western banks seven months earlier. The loan was then needed to acquire 25% plus two shares of Norilsk Nickel, the spokesperson for UC RUSAL reports.

The loan was offered to the enterprise for a period of one year, with the prolongation option available with the bank’s Supervisory Board’s consent. The interest rate comes to London Interbank Offered Rate plus 5%. UC RUSAL is planning to provide the 25% shareholding of Norilsk Nickel as a form of collateral.

Since the creditor is acting on behalf of the Russian Federation Government and to make sure the creditor’s interests are protected, a representative of the state is going to become a member of UC RUSAL’s extended Board of Directors (to be elected at the extraordinary general meeting on December 26, 2008). Besides, two state representatives are to join Norilsk Nickel’s management team.