United Co. Rusal, the world’s largest aluminum producer, picked Russia’s biggest bank OAO Sberbank to issue the nation’s first depositary receipts, as it seeks investors outside its Hong Kong and Paris listings.
The receipts will extend to all Rusal’s authorized share capital of 20 billion common shares, the Moscow-based company said today in an e-mailed statement. VTB Capital, the investment bank arm of Russia’s second-largest lender, is advising Rusal.
Issuing the receipts will allow Rusal, the first Russian company to sell shares in Hong Kong when it raised $2.24 billion in January, to attract investors that focus on securities traded in Russia. The receipts will be backed by the Hong Kong-listed common shares of the St. Helier, Jersey-registered company.
The depositary receipt program allows companies registered abroad to trade in Moscow. The program is awaiting registration by Russia’s financial regulator, Rusal said.
To contact the editor responsible for this story: Andrew Hobbs in Sydney at firstname.lastname@example.org