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Deripaska in HK flotation

ALUMINIUM giant Rusal, the group controlled by Russian billionaire Oleg Deripaska, is set to announce one of the biggest floats of the year this week, in Hong Kong.<br /><br />The $30bn (&pound;19bn) flotation, which will see 10 per cent of the group&rsquo;s shares put on the Asian market, is snubbing the London Stock Exchange (LSE) because there is a &ldquo;more receptive market to aluminium&rdquo; in Hong Kong, one source said.<br /><br />But industry experts say Rusal favours Hong Kong because of its less stringent reporting requirements.<br /><br />Rusal is also considering a secondary listing on Euronext, as it is a &ldquo;very receptive market,&rdquo; the source said.<br /><br />Advisers Credit Suisse and Goldman Sachs were not available for comment yesterday.<br /><br />Rusal said no final decision had been made on a flotation. <br /><br />The IPO comes as the company seeks to restructure $7.4bn of debt to a syndicate of more than seventy banks, including BNP Paribas and RBS. <br /><br />BNP is Rusal&rsquo;s biggest creditor, and is also bookrunning the deal, along with Bank of China International.<br /><br />The float will get the go-ahead If the banks agree to a deal which will see repayments spread over the next four years, and give them the rights to take up five per cent of equity if Rusal meets performance targets.<br /><br />The flotation will happen before the end of 2009, but there is no set timetable for filing for the offering.<br /><br />The global downturn has hit the price of aluminium, along with&nbsp; Rusal&rsquo;s value and Deripaska&rsquo;s personal wealth, hard. Russia&rsquo;s richest man Mikhail Prokhorov has upped his stake, and is now the second largest shareholder, next to Deripaska.