Russian Federation aluminium titan U.C. Rusal announced yesterday the closing of the book-building process for the second successful ruble bond placement the firm has made this year on the Moscow Exchange.
The just-completed bond placement is a 10-year bond with a 3.5-year put option and has a nominal value of ₽15 billion (US$236 million). A coupon rate of 8.6 percent per annum for the bonds was fixed at the lower level of the initial price guidance for the bonds.
Per Rusal, the bond was widely subscribed by both institutions and private investors, with over three dozen orders placed during the book-building process. As a result of the strong interest, Rusal was able to close the book at the lower end of its initial price guidance as well as increasing volume from its initial level of ₽10 billion (US$158 million).
“The second consecutive issue of ruble bonds this year has proved the increasing interest that investors have for RUSAL,” said Oleg Mukhamedshin, Rusal’s Director for Strategy, Business Development and Financial Markets.
“We are pleased to see that the Company remains a lucrative investment opportunity with its focused strategy on long-term development projects, creation of innovative technologies, particular attention to the environmental issues, and strengthening of the relationships with the end consumers.”
Settlement of the bond is planned to take place on the Moscow Exchange next Thursday. VTB Capital, Gazprombank, Moscow Credit Bank, Sberbank CIB, Otkritie Bank, and Region BC managed issuance, while Gazprombank will act as settlement agent.
This week’s issuance is the second set of bonds to be issued since the United States government rescinded sanctions in January. April saw the firm issue a 10-year ruble-denominated bond with a coupon bank rate of 9 percent and a final volume of ₽20 billion.