Deripaska's delay

7 December 2009 By Jason Bush

RUSAL’s Hong Kong IPO will be postponed until next year after the exchange’s listing committee sought clarification over how a $4.5 billion loan to VEB bank would repaid. But if that’s the only obstacle, it shouldn’t be too problematic given VEB’s evident support for RUSAL.

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The Hong Kong Stock Exchange's listing committee again deferred a decision to approve a listing by Russian aluminium producer RUSAL on Dec. 7, calling on the company to meet additional conditions.

The major reason for the decision was concern over how RUSAL would repay a $4.5 billion loan from Russia's stateowned VEB bank that falls due in October, according to a person close to the transaction. This loan, originally made in 2008, was extended by a year in October.

RUSAL had planned to list 10 percent of the company by the end of the year, raising an estimated $2 billion, following the successful conclusion last week of talks to restructure its $16.8 billion debts.

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