Russia’s RUSAL may pay debts through IPO, cash flow

Russian aluminum producer United Company RUSAL may repay a large part of its debts with funds raised from an initial public offering (IPO) scheduled within two years, the company said Monday citing Oleg Mukhamedshin, RUSAL’s director for capital markets.

According to Mukhamedshin, the company can also rely on its operating cash flow to pay down debts, but he added that RUSAL was not considering selling its stake in metals giant Norilsk Nickel.

According to earlier reports, RUSAL has agreed to the main terms of a long-term debt restructuring with the coordinating committee of creditors.

RUSAL owes $14 billion to banks and is to repay about $7 billion by November, including a $4.5 billion debt to state-owned Vnesheconombank.