Rusal Announces Price of Initial Panda Bonds

Russian Federation aluminium titan U.C. Rusal announced yesterday the particulars on the firm’s joint offering of Panda Bonds.

According to the company’s press release, the first tranche has a total principal amount of CNY1 billion (USD145 million, RUB8.4 million), a tenor of 2+1 years, and a coupon rate of 5.5% per annum. The offering is expected to close this coming Tuesday, March 21.

The offering is the product of meetings with fixed-income investors in the Chinese cities of Beijing, Shanghai, and Shenzhen. It is arranged by China International Capital Corporation Ltd. (CICC), one of the country’s leading investment banking firms. CICC will be serving as the bonds’ lead manager and bookrunner.

This offering is historic in nature, as it represents the first time a foreign company with global operations outside of China has entered the Chinese bond market via the Shanghai Stock Exchange.

“We are very pleased to see such a strong support from the Chinese investors: our initial plan was to proceed with RMB 500 million, but we ended up with RMB 1.0 billion,” explained Rusal’s CEO Vladislav Soloviev. “The pricing parameters are reflecting current market conditions and are attractive for a debut issuance. This pilot placement will strengthen the Company’s profile inside China and will further facilitate RUSAL’s longstanding collaboration with its Asian partners.”

Rusal says that it plans to use the proceeds to provide working capital the company needs in purchasing from Chinese vendors, among other needs. The remainder will be used to refinance company debt.

“Rusal’s first tranche Panda Bond issuance is a milestone event in China’s capital market, representing the first international private placement on the Shanghai Stock Exchange,” said the Executive Vice President and Head of Investment Banking of CICC Zhaohui Huang. “CICC is pleased to be the sole underwriter and book runner in this landmark deal. We congratulate Rusal for this successful debut!”



Comments are closed here.

SUBSCRIBE
Events
LME
  • Cash Buyer 1917.5 0.00%
  • 3-Months Buyer 1930.0 ' -0.05%

LME Official Price(USD/tonne) for 24 March 2017