Rusal Announces Successful Placement of US$500 MM Third Eurobond

Boasting of participation from over one hundred investors from four continents, Russian Federation aluminium leader U.C. Rusal announced the successful pricing of its third flight of Eurobonds yesterday.

The firm’s third foray into the international bond market totaled US$500 million, with a maturity of five years and a coupon rate of 4.85 percent per annum.

Rusal says this third issuance surpassed the popularity of the first two, as the placement was oversubscribed by more than three times. The firm indicates that the order book for this issuance topped US$1.5 billion.

Rusal’s CEO Vladislav Soloviev says the success of the third straight bond issue speaks to the company’s health, both as a sign of its current strength and a bellwether of its continued hardiness.

“The successful placement of our third Eurobond issue is an additional testimony of RUSAL’s attractive investment case, which continues to enjoy strong support from global investor community. This transaction further improves debt profile and its ability to pursue new business opportunities.”

The company says it plans to use the proceeds from this bond issue to refinance its current indebtedness, which they anticipate will make its debt portfolio more attractive to investors as well as easing the costs associated with it.

The current bond issuance follows almost exactly a year after its initial placement in early February 2017. That first Eurobond totaled US$600 million, and featured a five-year maturity term and a 5.125% rate of return. Demand was strong, with investors seeking double the amount of bonds offered.

Rusal’s second and latest Eurobond placement occurred in the spring last year. It was a US$500 million placement of bonds with a maturity of six years and a coupon rate of 5.3 percent per year.

The firm also issued an historic first tranche of Panda bonds last year, which totaled CNY1 billion (USD145 million, RUB8.4 million), a tenor of 2+1 years, and a coupon rate of 5.5% per annum.



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