Rusal, the world’s largest manufacturer of aluminum and alumina, paid its creditors 2.143 billion dollars from the proceeds received as a result of its initial public offering at the Hong Kong stock exchange, the NYSE, and Euronext in Paris.

The proceeds from the sale of shares went to repay the debt to international and Russian creditors (except Vnesheconombank) and also for the payment to Onexim Group. Also, Rusal made commission payments to international banks in connection with debt re-structuring. The combined volume of the company’s debt following these disbursals went down to USD 12.9 billion dollars. Payments to international creditors totaled USD 1.46 billion. Russian creditors received USD 253 million, and Onexim Group got USD 278 million dollars. Commissions paid to international banks were USD 152 million.

At this stage, Rusal has actually over-performed on its debt restructuring contract to pay down debts in 2010. The company still has an obligation to pay down USD 3.3 billion in debts by 2013.  

“As a result of a successful IPO, the company was able to raise funds that allowed us to reduce our debt substantially. It assured us that we correctly chose our strategy for overcoming the consequences of the world economic crisis and strengthening our competitive advantages. We will make efforts to extinguish our debts as soon as possible and increase the value of the company for our shareholders”, – said Oleg Mukhamedshin Rusal’s director for capital markets.

Rusal became the first Russian company with listings in Hong Kong. The largest purchasers of Rusal’s stock during the IPO were Vnesheconombank (3.15 percent), NR Investment Limited (0.48 percent), Paulson and Co. Inc. (0.47 percent), and the companies of Asian billionaire Robert Kuok (0.09 percent).

Rusal’s free float will be 10.64 percent of total shares or 11.95 percent in the event an over-allotment option covering the difference between market demands and the offer will be exercised. After the IPO, Oleg Deripaska’s En + holds 47.59 percent of the company, Michael Prokhorov’s Onexim Group has 17.09 percent, SUAL Partners has1 5.86 percent, and Amokenga Holdings (representing Swiss trader Glencore) 8.65 percent.

The global coordinators and bookrunners of the IPO are BNP Paribas Capital (Asia Pacific) Limited and Credit Suisse (Hong Kong) Limited. Other bookrunners are Bank of America Merrill Lynch, BOC International, Nomura, Renaissance Capital, the Savings Bank, and VTB Capital.