Rusal Repays ₽27 Billion In Corporate Debt Ahead Of Schedule

Rusal Repays ₽27 Billion In Corporate Debt Ahead Of Schedule

Russian aluminium giant UC Rusal announced last week the repayment of ₽27 billion (US$371 million) in indebtedness on a 2010 loan.

Rusal took out the loan eleven years ago from Sberbank. The loan’s principal had elements in both US dollars and Russian rubles, now totaling US$2.1 billion and ₽79.5 billion after the recent repayment. Amortization begins three years from this month, while final maturity occurs at the end of 2027.

Alexander Popov, Rusal’s Finance Director, said in a related press release that it would continue to find ways to operate more economically.

“RUSAL constantly pursues different options for debt portfolio management to further optimize its profile and reduce costs. The current repayment was made out of the company’s free cash flow for the first half of 2021, a significant part of which was formed from the dividends received from Norilsk Nickel.”

The loan itself is secured by shares of PJSC MMC Norilsk Nickel.

Though aluminiuim is at multi-year highs at the moment, Rusal is still playing it safe to a large extent due to rising Russian taxes and a recent coup in Guinea. The government situation in the West African nation could have a major effect on the source of over 40 percent of Rusal’s total global bauxite supply.

Rusal’s shareholders voted down a proposed dividend payment last week, despite urging to the contrary by Sual Partners, who owns just over a quarter of the company. Sixty-two percent of the votes cast at the meeting were against paying a dividend, which the firm has not done in four years.