UC Rusal nears $7.4 bln debt revamp ahead of HK IPO

UC RUSAL, the world's largest aluminium producer, is close to a deal to restructure $7.4 billion in debt to foreign banks which is crucial for the Russian firm's planned $2 billion IPO in December, a newspaper reported.

Controlled by Russian oligarch Oleg Deripaska, UC RUSAL is seeking a primary listing in Hong Kong and secondary listing in Paris, with investors' meetings starting as early as Nov 30.

The debt deal, which bankers said is probably the largest and most complex of the restructurings undertaken by debt-swamped Russian firms, is likely to be announced as early as next week after approved by creditor banks, the Wall Street Journal reported on Saturday, quoting people familiar with the deal.

'All the terms are agreed,' it quoted one person close to the talks said.

A RUSAL spokesman declined to comment, the paper said.

The deal, extends over seven years, is aimed at allowing Rusal breathing space to repay $16 billion in debt built up when metal prices were at record highs before the financial crisis hit last year, Wall Street Journal said.

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