OREANDA-NEWS. August 22, 2007. United Co Rusal, the world`s largest aluminium producer, is selling US$2 billion of loans as it refinances debt amid a rout in credit markets.

ABN Amro Holding NV, Barclays Capital and Citigroup Inc are among eight banks syndicating the seven-year loan for the Moscow-based company to a wider group of investors, according to a person with direct knowledge of the deal, who declined to be named because the information is private.

Russian commodity producers are considered a safer bet by investors as the global credit crunch caused more than 50 bond and loan deals to be postponed or cancelled.

OAO Gazprom, the nation`s natural-gas export monopoly, this month sold US$1.25 billion of 30-year bonds after postponing the sale in July.

“The big Russian corporates are a commodity play, so that`s where people get some comfort to invest," said Chris Green, a senior economist in London at OAO VTB Bank, Russia`s second biggest publicly traded bank.

“The general backdrop is more cautious, but Russian fundamentals are still reasonably good.”

The loan for Moscow-based Rusal will be partly used to refinance a US$550 million unsecured bridge loan arranged by UniCredit SpA. A meeting will be held with investors in early September and the deal is expected to close by October, the person with knowledge of the deal said.

Rusal, controlled by billionaire Oleg Deripaska, was formed in March by a merger of OAO Russian Aluminium, Sual Group and the aluminium assets of Glencore International AG.