Rusal is one step closer to the Paris Bourse
Restructure its debt and enter the stock market with a dual listing in Hong Kong and Paris. This was the program of Russian Rusal, the world's largest producer of aluminum this year. The first step has been completed on time.
Prior to renegotiation, the group's debt amounted to 16.8 billion dollars (for a 2008 turnover of 15.7 billion dollars). It was reduced to 14.9 billion dollars. The group has completed one of its primary goals: reduce cost.
In detail, the 7.4 billion driven by international creditors (including large French banks) will be settled in two stages. The first four years, Rusal make principal repayments on the basis of its available cash. Interest will be paid partly in cash and the balance will be funded.
Then, the remaining debt will be refinanced for an additional period of three years. A similar agreement was reached with the creditors of the Russian group, which are 2.1 billion of debt, the new rate of 8-9%.
A value of 30 billion dollars
RUSAL also signed an agreement with Onexim – a leading Russian investment fund – the creditor group to the tune of 2.7 billion. The fund has agreed to convert $ 1.82 billion in a 6% shareholding in Rusal. This therefore values the company at 30.3 billion dollars.
Finally, net debt, estimated at 5 billion by counting the future interest will be subject to periodic payments by the fourth quarter 2013. The group has already indicated that some funds raised on financial markets would be used to repay debt.About 5 billion would be spent.
Oleg Deripaska, Rusal CEO and principal shareholder, welcomed "a project of such size and complexity without precedent." It remains now to get the stock exchange's business under pain of seeing nationalized. And even the Russian state does not acquire a significant share of its capital.
However, the IPO of Rusal is far from being a plain sailing. The group plans to make its debut on the coast of Hong Kong before the end of the year. A calendar that may be difficult to hold. In 2007, Rusal was considered a listing in London before giving it up.