Rusal completes bond placement

(Posted on 11/11/19)

RUSAL, one of the leading global aluminium producers, has announced the close of the bookbuilding process for its fourth placement of ruble-denominated bond on the Moscow Exchange with the nominal value of 15 billion rubles, 10-year maturity and a 3-year put option. Coupon rate of 7.45% p.a. has become the record low for the Company.

RUSAL is the leader of the global aluminium industry. In 2018, the Company accounted for about 5.8% of global production of aluminium and 6.2% of alumina production.

The coupon rate has decreased several times during the bookbuilding: the initial guidance of 7.50-7.60% was first revised to 7.45-7.50%, and finally the deal was settled at 7.45% p.a. This is the record low coupon rate for the Company’s placement on the Russian market.

As a result, during 2019 RUSAL has competed four placements of ruble-denominated bonds with the total value of 60 billion rubles. The coupon rate was set lower with every issue – from 9.00% p.a. in April, when the first tranche was placed for the first time after a long break, to 7.45% for the final issuance in November.

“The successful issue of ruble bonds throughout the course of this year has demonstrated the high level of trust which the investment community continues to place in RUSAL, and reinforces the current relevance of the Company’s strategic goals – such as the reduction of our carbon footprint and the introduction of technological innovations through the development and promotion of new aluminium products”, said Oleg Mukhamedshin, RUSAL’s Director for Strategy, Business Development and Financial Markets.

Each time on the back of high demand the size of issuance was increased during the bookbuilding process as compared to the initial guidance, which is another evidence of the financial community’s interest and trust in the Company.

The settlement will take place on the Moscow Exchange on November 14, 2019. The issuer is OJSC RUSAL Bratsk.

VTB Capital, Gazprombank, Moscow Credit Bank, Sberbank CIB, Bank Otkritie Financial Corporation, BCS Global Markets, Region BC and Sovcombank manage the issuance. The settlement agent is Gazprombank.

Latest News

SSAB delivers decarbonised steel to Vattenfall’s solar park project in Germany

SSAB is supplying decarbonised steel to Vattenfall for the construction of the ground-mounted solar... Read more

NGFA statement on STB’s decision to conditionally accept rail merger application

In accordance with the Surface Transportation Board’s merger rules, the Board has conditionally... Read more

EU feed production market forecast highlights continued stability

FEFAC market experts are forecasting continued stability in the EU compound feed production market for... Read more

Fertilizer Action Plan: recognition must now translate into delivery

Fertilizers Europe has acknowledged the European Commission’s Fertilizer Action Plan, which recognises... Read more

Tripartite MOU to establish direct U.S.–DRC cobalt supply chain

Entreprise Générale du Cobalt, EVelution Energy LLC and Trafigura Pte Ltd. has announced... Read more

Commissioning of Oxelösund electric arc furnace delayed due to permitting

SSAB’s conversion of the mill in Oxelösund to fossil-free production is being delayed due... Read more

YEC agreement supports decarbonisation of Rio Tinto’s Pilbara iron ore operations

Yindjibarndi Energy Corporation (YEC), one of Australia’s largest Indigenous-led renewable energy... Read more

ASA Vice President urges caution in USTR Section 301 investigation

Soybean farmers are already facing significant economic headwinds and new trade actions could add further... Read more

ADM investment to upgrade Clinton, Iowa, corn processing facility

ADM, a global leader in innovative solutions from nature, has announced a multimillion-dollar investment... Read more

JV in Bayuquan, China to strengthen global raw material supply chains

CREMER ERZKONTOR GmbH has announced the official opening of its joint venture, CREMER (Yingkou) Supply... Read more