MOSCOW, May 25 (Reuters) - Russian aluminium producer Rusal has entered into a new syndicated pre-export finance facility agreement for $1.7 billion which it will use to refinance debt, it said on Thursday.
Hong Kong-listed Rusal, the world's second-largest aluminium producer, also said it had agreed with its lenders "a new approach to the calculation of certain covenants".
Russian tycoon Oleg Deripaska controls 48 percent of Rusal through his En+ Group, which also manages his hydro power businesses. En+ plans to raise $2 billion in listings in London and Moscow in June, sources told Reuters.
"During the syndication process the commitments received exceeded $2 billion, due to strong support from the lenders. The final facility amount was reduced to $1.7 billion in line with the company's actual needs to refinance its indebtedness," Rusal said in a statement.
The interest rate for the credit line is three-month Libor+3 percent per annum and the maturity is five years with the repayment starting in two years.
It said its total net debt to core earnings covenant will be calculated with the exclusion of debt secured by Rusal's stake in a miner Norilsk Nickel (Nornickel) and the dividends Rusal gets from the company.
Conditions for the dividend payment have also been further aligned to Rusal's dividend policy adopted in August 2015, with the amount of dividend to reach up to 15 percent of covenant EBITDA, which includes Nornickel's dividends.
"In addition, the 'cash sweep' mechanism and corresponding restrictions to be cancelled," Rusal said.
En+ has said that rouble revenues from power sales support repayment of its rouble debts, while Rusal's dollar-denominated dividend supports its dollar debt payments. (Reporting by Polina Devitt; editing by Susan Thomas)