![International Bulk Journal](https://www.ibj-online.com/images/international-bulk-journal.png)
![Menu](https://www.ibj-online.com/images/showmobnav-bg.png)
(Posted on 28/10/19)
RUSAL, one of the leading global aluminium producers, has announced the signing of a new five-year sustainability-linked pre-export finance facility for USD 1,085,000,000. The size of the facility increased from the initially announced
USD 750 million as the market supports the Company’s commitment to low-carbon aluminium technologies and green aluminium production.
The signed facility is the first ever sustainability-linked syndicated facility arranged by international and Russian commercial banks in Russia.
The interest rate is subject to a sustainability discount or premium depending on the Company’s fulfilment of the sustainability key performance indicators (KPI).
Sustainability KPIs are related to the Company’s environmental impact and sustainable development and include the growth targets of ALLOW aluminium sales – RUSAL’s low-carbon aluminium produced with hydropower.
Other KPIs also cover the reduction of carbon footprint and decrease of fluoride emissions. They will be measured annually and verified by an independent and specialized third party.
The proceeds of the facility will be used to partly refinance the principal outstanding under the existing up to USD 2 billion pre-export finance facility that was drawn in May 2017.
ING Bank, a branch of ING-DiBa AG, and Natixis were Coordinating Bookrunning Mandated Lead Arrangers. Bank of China, Crédit Agricole Corporate & Investment Bank, Societe Generale and UniCredit S.p.A. acted as the Initial Bookrunning Mandated Lead Arrangers, Sberbank of Russia as the Bookrunning Mandated Lead Arranger and RCB Bank LTD as the Initial Mandated Lead Arranger. Intesa Sanpaolo Bank Ireland Plc and Bank ZENIT (Public Joint Stock Company) were the Mandated Lead Arrangers and Raiffeisen Bank International AG was the Lead Arranger.
“We are very delighted to witness this level of trust from the investment and banking community towards the Company’s sustainability initiatives. Such high market interest also reflects the rising global demand for the low-carbon aluminium, of which RUSAL is the largest producer. The sustainability-linked pre-export finance facility further proves the Company’s seamless focus on prioritizing the transparency of the green aluminium production, as is the case with ALLOW, RUSAL’s low-carbon aluminium. Moreover, it is a crucial step towards the refinancing of the Company’s debt optimizing maturities and financing costs”, said Evgenii Nikitin, RUSAL’s CEO.
RUSAL is the largest producer of green aluminium in the world. The smelters which produce its low-carbon aluminium ALLOW have a carbon footprint four times lower than the industry average (scope 1&2). RUSAL continues to pioneer new technology which is focused on eliminating its greenhouse gas emissions. The Company’s extensive sustainability program includes a variety of initiatives including a country-wide reforestation programme, in which 1 mln have been planted in Siberia.
Rio Tinto has celebrates the shipment of four billion tonnes of iron ore from the Pilbara in Western... Read more
Capt. Pappu Sastry, CEO of Adhira Shipping and Logistics (ASL) has said that Africa’s mining sector... Read more
All conditions have now been satisfied for Rio Tinto’s investment to develop the Simandou high... Read more
ADM, a global leader in innovative solutions from nature, has announced that it is offering fully verified... Read more
Rio Tinto will install carbon free aluminium smelting cells at its Arvida smelter in Québec,... Read more
Moonbound Mining Ltd. has appointed Adhira Shipping and Logistics (ASL) as its logistics contractor... Read more
ADM and Bayer have announced an extension of their collaboration, working with farmers in a bid... Read more
A House appropriations subcommittee in the USA has approved its Fiscal Year 2025 bill that includes... Read more
Rio Tinto has agreed to acquire Mitsubishi Corporation’s 11.65% interest in Boyne Smelters Ltd... Read more
Richards Bay Minerals (RBM) has signed a renewable power purchase agreement (PPA) with Khangela Emoyeni... Read more