United Co. Rusal, the world’s largest aluminum producer, is holding preliminary talks with international lenders to arrange $4.6 billion of loan refinancing, two people with knowledge of the matter said.
Rusal is seeking new funds to settle the debt with state-run OAO Sberbank, which matures in 2016, the people said, asking not to be identified because the talks are private. They didn’t name the potential new lenders.
Rusal restructured $17 billion of borrowings in 2009 and had debt of $10.8 billion as of Dec. 31, 2012, a presentation posted on the Moscow-based company’s website today shows. Rusal needs to pay $500 million to Russian lenders this year and $1.5 billion to domestic and international lenders in 2014, the presentation shows.
The aluminum company in 2010 arranged a $4.6 billion loan from Sberbank, Russia’s largest lender, at a rate of 4.5 percent above London Interbank Offered Rate, due in 2013 to refinance a similar amount owed to state-run development bank VEB. Sberbank agreed two years ago to extend the loan to 2016.
Officials for Rusal and Sberbank declined to comment.