* RUSAL expects first physical aluminium ETF in Q1 in London
* Estimates 2-3 million tonnes of unreported stocks globally (Adds quote, details)
By Polly Yam
HONG KONG, Jan 18 (Reuters) - United Company RUSAL Ltd said on Tuesday that it has selected four banks for a yuan-denominated bond issue in Hong Kong that it plans to launch in the first quarter.
"We have agreed with four banks to arrange this pilot RMB bond issue for RUSAL here in Hong Kong," Deputy Chief Executive Oleg Mukhamedshin told reporters on the sidelines of a financial forum in the city.
He did not identify the four banks as some details had yet to be finalised, but said one was Chinese, one was from Hong Kong, one from Europe and one bank was Russian.
Mukhamedshin said the size of the issue should not be more than 1 billion yuan ($152 million), depending on demand.
"We believe the RMB (bond) market is a promising one. (It is) growing extremely fast. We want to be in the market at the very beginning," he said.
Mukhamedshin said RUSAL had no plans to sell its 25 percent stake in the world's top nickel producer JSC MMC Norilsk Nickel as the Russian company considered it a long-term investment.
RUSAL, the world's leading primary aluminium producer, filed lawsuits last week to defend its interest in Norilsk Nickel.
Mukhamedshin said RUSAL expected the first physical aluminium exchange-traded fund (ETF) to be launched in the first quarter in London, which could draw demand for 1 million tonnes of aluminium this year.
"I think it will take a certain amount time to develop this product ... our estimate is there should be demand for 1 million tonnes this year, depending on how quickly it is launched." Mukhamedshin told Reuters.
He said RUSAL was interested in becoming a supplier of the metal to such ETFs.
London Metal Exchange aluminium prices rose 11 percent last year. AT 0436 GMT on Tuesday, aluminium was traded at $2,448.5 per tonne.
Mukhamedshin said the company estimated unreported aluminium stocks globally stood at 2-3 million tonnes, in addition to LME aluminium stocks, which stood at 4.44 million tonnes on Monday.
"We don't see the stocks rising," he said.
The estimate was lower than the 11 million tonnes estimated by another major aluminium producer Norsk Hydro ASA for reported and unreported aluminium inventories last week. ($1=6.58 yuan) (Editing by Chris Lewis)