Rusal Places First Ever Yuan Bonds In Russia

Rusal Places First Ever Yuan Bonds In Russia

Aluminium titan U.C. Rusal this week announced the first ever Yuan bond placement in its home country of Russia.

Per the firm, the new bond placement enjoyed significant interest, as demand was more than double the amount of bonds on offer. The bonds had a fixed coupon rate of 3.9 percent per annum and a total overall value at CN¥4 billion.

Rusal said that, as a result of the bond’s popularity, the yield ratio was reduced by over one percent from the original target.

Alexei Grenkov, Head of Corporate Finance of Rusal, said in a press release that the placement was the result of growing demand from the market for such instruments.

“It seems natural to us to choose Yuan denominated bonds placement, given the current situation on the financial market. We see a significant demand for such financial instruments, both from Russian banks and from private investors, for whom the transition to the Yuan is a good alternative to traditional foreign exchange investments. Increased demand and established confidence demonstrated by Company’s investors made it possible to carry out a unique and one of the most successful placements on the Russian market.”

Rusal registered BO-05 and BO-06 series bonds with a five-year term on July 15th with the Moscow Exchange. Each bond has a nominal value of CN¥1,000, and coupons will be processed twice yearly. The bond issue has an offer in two years.

The bond’s issuance was managed by Gazprombank, Credit Bank of Moscow, and Bank ZENIT.