Rusal Premieres US$500 MM Second Flight of Eurobonds

Russian Federation aluminium leviathan U. C. Rusal announced the terms of its second Eurobond issue yesterday.

According to the press release, the second tranche will total US$500 million and mature in six years. The coupon rate of the tranche is 5.3% per year, with proceeds to be used for refinancing Rusal’s existing debt, bettering the firm’s debt profile and reducing the cost of entering into future debt agreements as a result.

“The successful placement of our second Eurobond issue since January verifies the confidence from the financial community in RUSAL and furthers the investment case of our company,” explained Rusal’s Chief Executive Officer Vladislav Soloviev. “By strengthening our public debt market positions, we are further improving our debt portfolio and creating additional opportunities for future business development.”

This follows the first tranche of Eurobonds, which was issued in February. The US$600 million bond had a maturity term of five years at a 5.125% rate of return. Although numbers were not made available by the company for the second tranche, the initial tranche was notable for its investment profile, with eight in ten investors hailing from beyond Russia’s borders and with almost two out of three purchasers being mutual funds.

This also follows Rusal’s historic first tranche of Panda bonds, which totaled CNY1 billion (USD145 million, RUB8.4 million), a tenor of 2+1 years, and a coupon rate of 5.5% per annum. The proceeds of the initial tranche were raised to provide working capital the company needs in purchasing from Chinese vendors, among other needs, with the remainder to be used to refinance company debt.



Comments are closed here.

SUBSCRIBE
Events
LME
  • Cash Buyer 2144.0 -0.05%
  • 3-Months Buyer 2159.5 0.00%

LME Official Price(USD/tonne) for 16 October 2017