Russian Federation aluminium titan UC Rusal announced yesterday its achievement of sustainability benchmarks negotiated in a finance facility signed last year. As a result, the firm will now be assessed a lower interest rate than it has been paying on the loan until now.
Per the firm, it met 2019 target levels of the sustainability key performance indicators (KPI) set forth in the finance facility. The groundbreaking pre-export facility for US$1.085 billion will now be assessed an interest rate of 2.1 percent, which will run until the next reporting period in the middle of 2021.
The KPIs by which Rusal’s credit facility is adjusted include growth targets of the sale of ALLOW aluminium, which is the firm’s low-carbon offering. Additional KPIs negotiated into the credit facility measure the reduction of Rusal’s carbon footprint and fluoride emissions.
“We are glad to confirm the fulfillment of the Company’s targets towards the reduction of emissions and the growth targets of sales of Rusal’s low-carbon aluminium ALLOW,” said Oleg Mukhamedshin, Rusal’s Director for Strategy, Business Development and Financial Markets.
“We have remained committed to maintaining the high level for best ESG practices and achieved sustainable development goals, which is also noted by independent experts and international ESG rating agencies. We are happy to see that the link to the Company’s sustainability initiatives could be successfully embedded in the financing instruments. Despite all the current market turbulence and the challenging times that the world economy faces as a result of the COVID-19 pandemic, we remain committed to our social and environmental goals, which will always be an integral part of our corporate strategy.”
Coordinating Bookrunning Mandated Lead Arrangers of the facility were ING Bank and Natixis. Initial Bookrunning Mandated Lead Arrangers were Bank of China, Crédit Agricole Corporate & Investment Bank, Societe Generale and UniCredit S.p.A. The Bookrunning Mandated Lead Arranger was Sberbank of Russia, while RCB Bank LTD served as the Initial Mandated Lead Arranger. Mandated Lead Arrangers were Intesa Sanpaolo Bank Ireland Plc and Bank ZENIT (Public Joint Stock Company), and the Lead Arranger was Raiffeisen Bank International AG. Sustainability Coordinaters are Societe Generale and Natixis.