7 billion due in 6 of the capital of Rusal

The leader of the Russian Rusal aluminum, signed with all of its creditors of the agreements to restructure debt ("Les Echos" from November 30). The largest portion, $ 7.4 billion loaned by international financial institutions (of which $ 1.6 billion provided by the French banks, BNP Paribas in head), will be repaid in two phases.

The first phase, which spans four years, Rusal renders the money "with cash on the basis of the performance of the company, to ensure the continuity and integrity of activities", says the company. Oleg Mukhamedshin, Director of the capital markets, said that the pace and the amounts of the refunds depend on "flows of cash and the price of aluminum. "In theory, we have three sources to finance the debt: the cash flow; possible stock and disposals of assets. "We're going to appeal to the three," he said.

Inspired by the same concern to consent to the company a normal operation, the international creditors were assigned a range of very reasonable rate in view of the importance of the overall net debt: $ 16.8 billion. The interest will be paid "partially in cash at Libor rates increased from 1.75 to 3.5, depending on the level of debt."The remaining part will be, with respect to it, "capitalized".

Open mind

The second phase of restructuring, for a term of three years, will leave for Rusal the choice of using the existing creditors or "another form of refinancing... which will be the most favourable."Such open-mindedness on the part of financial institutions is unusual these days, but it is in the extent of the risk of default incurred.

Recognizing, Oleg Deripaska, the Tycoon who holds the majority of Rusal and who directs an iron hand, operations has not hidden his joy: "We want to thank our shareholders for their support led to the conclusion of the model agreement for any Russian or international business and our creditors."

The indisputable quality of many assets of the Group and the competitive structure of costs (37.4 alumina 19.3 energy 5.8 labour; 26.1 other components) have also weighed in the balance. Despite a physical market of aluminum today marked by very high stock levels, bankers have joined the strategic bet RUSAL entirely focused on the growth of Chinese demand. Evidenced by the choice of Hong Kong as a main square of rating of new actions that the firm is preparing to issue. Paris, he was selected in a dual primary listing in view of the decisive weight of hexagonal financial institutions in debt in dollars of Rusal (21.6 of the total).

Major concession

The agreement with foreign banks is the matrix than their Russian counterparts (VTB); Gazprombank and Sberbank) on a slice of $ 2.1 billion. The mining and metallurgical group tore decreased to 8 or 9 of the annual rate of interest of these loans. As to the portion of the Russian Bank of State VEB (Vnesheconombank) 4.5 to 4.6 billion, it should not be renegotiated because it runs through 2010 and is guaranteed by one of the most lucrative assets of Rusal: its 25 Norilsk Nickel. In addition, Sberbank and VEB have expressed their availability to take a direct participation in the capital of the producer of grey metal in his introduction on the stock exchange.

However, Oleg Deripaska had to make a major concession to its peer Mikhail Prokhorov by converting 1.86 to $ 2.7 billion due in 6 of the capital of Rusal. As a result, the oligarch control 19.16 of the capital.

Sealed off the very sensitive record of debt, the number one aluminum can concentrate on the preparation of the double introduction on the stock exchange. An ad hoc Committee of the Hong Kong regulator will meet Monday to decide next. Whereas yesterday, the verdict of the Constable of the Chinese market could not be made for simple technical reason, learn banking sources.

In the entourage of the MFA, which must also rule on the record, the views would be generally favourable rating in Paris of Rusal. The case is argued in Paris by the French banking industry heavy weights. Even if the period is not supportive to first rating on the stock market, after the restructuring of the debt, it is technically possible before the end of the year, says a banker.