- About us
- IBJ Awards
- Free Sample
- Contact us
Rusal’s $1Bn pre-export finance facility
(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.
BHP’s Chilean operations Escondida and Spence, and Olympic Dam in Australia, have been awarded... Read more
Glencore and Evolution Mining Limited (Evolution) have entered into a binding agreement for the sale... Read more
Rio Tinto is investing US$87 million to increase its low-carbon aluminium production in Canada with... Read more
RUSAL, a leading global aluminium producer, together with KUMZ, has successfully launched the production... Read more
Driven by sustained market recovery and further progress in the implementation of its strategic agenda... Read more
Chairman of the Board, Ben Munanga and Chief Executive Officer, Mark Farren have announced that Kamoa... Read more
Ten of the world’s biggest global agricultural trading and processing companies have issued a... Read more
En+ Group, together with its metals segment, RUSAL, has published research that stresses the critical... Read more
Rio Tinto and Carbfix are partnering to implement a technology for capturing carbon and permanently... Read more
The Verein der Kohlenimporteure e. V. (VDKi) – the German Coal Importers association, believes... Read more