(Company corrects amount to $5 billion from $6 billion)
* Rusal has net debt of around $10 billion
* No clarity on terms of refinancing deal with Sberbank
* Earlier discussed an option to tie repayment with
LONDON, March 6 Russian aluminium giant Rusal
has reached a deal with Sberbank to
refinance its $5 billion debt with the country's largest lender,
Rusal Deputy Chief Executive Oleg Mukhamedshin said on Thursday.
Rusal, hit by weak aluminium prices and heavy net debt
levels of around $10 billion, had been in talks on a debt
restructuring deal with the state bank, sources said in January.
"We have finished our discussions and we have credit
approval," Mukhamedshin told Reuters. "So currently we are
finalising the ... process."
He did not provide further details. Sberbank declined to
In January Rusal and Sberbank were discussing the model,
under which "if aluminium prices remain low, the debt is to be
repaid over 20-30 years; if they go up, then the cash flows will
allow Rusal to redeem everything within five years," one of the
sources said that time.
In 2010, Sberbank took on a loan made by the state to Rusal
during the financial crisis. It is now worth around $4.6 billion
and matures in September 2016. The loan is secured against
Rusal's stake in Russia's Norilsk Nickel, the world's
leading miner of nickel and palladium.
Rusal, one of the world's biggest producers of the metal
used in transport and packaging, has a primary listing in Hong
Kong and secondary listings in Paris and Moscow.
(Reporting by Susan Thomas; Additional reporting by Oksana
Kobzeva; Writing by Polina Devitt; Editing by Jane Baird,
Veronica Brown and David Evans)