Rusal Places This Year’s Third Set Of Ruble Bonds

Rusal Places This Year’s Third Set Of Ruble Bonds

Russian aluminium titan U.C. Rusal closed the book-building process on its third placement of 10-year ruble-dominated bonds earlier this week. With a three-year put option on the Moscow Exchange and a nominal value of ₽15 billion, the bond has a record-low coupon rate of 8.25 percent.

Per the firm, the placement generated interest from a wide range of institutions, including banks, asset management firms, insurance companies, investment firms, and private investors. With over 50 orders placed during the book-building process, Rusal was able to close the book at a rate of 8.25 percent, representing the lowest-ever coupon rate offered by the firm.

Rusal said demand for the bond enabled them to drop the coupon rate from an initial level of between 8.5 percent and 8.65 percent, as the volume saw a ₽5-billion increase to ₽15 billion. Oversubscription to the bond was significant at over four times the initially-planned amount.

Oleg Mukhamedshin, Rusal’s Director for Strategy, Business Development and Financial Markets, said that the success of the bond points to the continued faith investors have in his firm’s direction.

“The third consecutive issue of ruble bonds this year has again demonstrated the increasing interest and support from the investment community for RUSAL. We are pleased to see that the Company remains a lucrative investment opportunity with its strategy that is aimed at the innovative development and meets current environmental demands.”

The settlement for Rusal’s third public issuance is slated to occur next Thursday, September 12. OJSC RUSAL Bratsk will serve as issuer, with Gazprombank standing in as the settlement agent. Managing the issuance were the firms VTB Capital, Gazprombank, Moscow Credit Bank, Sberbank CIB, BCS, and Region BC.

To date, 2019 has witnessed Rusal complete ₽30 billion in public issuances in three placements. Each placement so far has been significantly increased due to overwhelming investor demand.