AFP reported that Russian aluminum giant UC Rusal suffered USD 6 billion loss in 2008 due the global economic crisis according to a presentation ahead of its planned share listing in Hong Kong and Paris.

The Vedomosti daily said that Rusal announced the 2008 net loss of USD 5.98 billion in a presentation to analysts from investment banks who plan to take part in its Initial Public Offering. The IPO which has so far not been officially confirmed by the company would be the most significant such listing by a Russian firm since the onset last year of the financial crisis.

According to Vedomosti, the company made a net loss of USD 720 million in the H1 of 2009. It said that revenues at Rusal had remained robust, reaching USD 15.68 billion in 2008 and that most of its losses stemmed from write downs on assets.

Most importantly, its 25% stake in the world's biggest nickel producer Norilsk Nickel acquired in April 2008 just before the financial crisis broke is now only worth a fifth of what it was. The majority shareholder in Rusal is Russia's former richest man Mr Oleg Deripaska who owns almost 57% while the current richest man Mikhail Prokhorov has a 14% stake.

Vedomosti said that the IPO would involve 10% of the company's capital and the proceeds would be used exclusively to eradicate its debts.

According to media reports, Rusal plans to list simultaneously on the Hong Kong Stock Exchange and the Paris bourse, part of the pan European stock exchange Euronext but not in Russia. The economic crisis has left Rusal billions of dollars in debt and it has been in complex talks with its creditor banks to restructure the debts.

(Sourced from AFP)