Russia's state-run savings bank Sberbank and development bank Vnesheconombank (VEB) have agreed on rescheduling a $4.5 billion debt owed by aluminum giant RusAl, Sberbank's CEO said on Thursday.
"This is an absolutely market deal. We have an agreement with VEB on refinancing RusAl's debt on a parity basis on very advantageous terms. With current surplus liquidity, we would like this deal to be carried through," German Gref said.
RusAl, which accounts for approximately 11% and 13% of global production of aluminum and alumina, respectively, piled up large debts before the 2008 global financial crisis, obtaining cheap loans internationally and domestically, and is now struggling to repay its liabilities.
The world price of aluminum plunged more than 30% last year as the global recession reduced demand from automakers and builders.
RusAl signed a deal with creditors in late 2009 to restructure $16.8 billion in the next few years.
RusAl is also seeking to raise as much as $2.6 billion through an initial public offering in Hong Kong later this month, and will use the proceeds to pay creditors. The IPO will be the first share offering by a Russian company in Asia.
MOSCOW, January 21 (RIA Novosti)
