A team of Carey Olsen lawyers has advised Vnesheconombank (VEB) on the grant to the bank of Jersey security interests in 5% of the shares of United Company RUSAL Plc (RUSAL). The grantors were the four major shareholders in RUSAL.
VEB, which is one of the principal state banks in Russia, has entered into a guarantee issuance agreement with RUSAL, under which VEB has guaranteed $2,250,000,000 of RUSAL’s obligations to Sberbank. The security over shares has been granted in support of RUSAL's obligations under the guarantee issuance agreement. The Sberbank loan is a refinancing of debt originally raised to finance the acquisition of a 25% state in OJSC MMC Norilsk Nickel, the world’s largest producer of nickel and palladium.
RUSAL is the world’s largest producer of aluminium, accounting for approximately 10% of global production of both aluminium and alumina in 2009. The company is incorporated in Jersey and listed on the Hong Kong Stock Exchange. The RUSAL group employs more than 76,000 people in 19 countries across five continents, and sells its products primarily to the European, Japanese, Chinese, Korean, South East Asian and North American markets.
Carey Olsen partner Nicholas Crocker and associate James Willmott advised VEB on the Jersey aspects of the transaction.
“This was a very demanding transaction in which the document had to be agreed in a short time between VEB and the four major shareholders, with intense negotiation on key commercial points. This transaction demonstrates Carey Olsen’s expertise and commitment in advising on very substantial international secured financings, the value of this shares security at the date of the transaction being approximately £500million,” said Mr Crocker.
Dewey & LeBoeuf were Russian law advisers to VEB.