Vnesheconombank will issue a loan to BEMO

Under the funding terms for the BEMO (Boguchanskoye Energy and Metals Complex) Project, approved by a resolution of the Vnesheconombank Supervisory Board on July  28, 2010, and in order to guarantee meeting the credit liabilities of JSC Boguchanskaya HPP and JSC BoAZ, the Company must pledge the shares it holds of JSC Building Owner of Boguchanskaya HPP Organizer of Construction of Boguchanskaya HPP, JSC Organizer of Construction of Boguchansky Aluminum Smelter and Building Owner of Boguchansky Aluminum Plant, and the promissory notes of JSC Boguchanskaya HPP and JSC BoAZ, and must become surety under the credit agreement between JSC Boguchanskaya HPP and Vnesheconombank. RusHydro's surety commitment will come into play in certain events, determined by the resolution of the EGM including failure to meet the HPP commissioning dates.

The Vnesheconombank Supervisory Board resolved to extend a loan of 28.1 billion rubles for 16 years to complete the Boguchanskaya HPP project. The loan will be repaid from cash flows of the projects within the BEMO Project, generated by proceeds of sales of electric power and aluminum, less sale costs.

BEMO is the project of RusHydro and UC Rusal. With a budget of $3.6 billion, the project will see the complete construction of the 3,000MW Boguchanskaya Hydropower Plant on the Angara River and the building of a greenfield 600,000 tonnes-per-annum aluminium smelter. 

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