Russian Federation aluminium titan U.C. Rusal closed the bookbuilding process for this year’s fourth placement of a ruble-denominated bond on the Moscow Exchange earlier this week.
The bond in question has a total nominal value of ₽15 billion and features a 10-year maturity and a 3-year put option. Originally offered with a coupon rate of between 7.50 and 7.60 percent, the rate was first revised downward to between 7.45 and 7.50 percent, then again to its final rate of 7.45 percent. The coupon rate for this bond represents the lowest rate yet for a bond placed upon the Russian market by Rusal.
This week’s placement is the firm’s fourth in 2019, pushing the year’s total bond placements to ₽60 billion. The coupon rate for each of the four placements has been lower than the last, beginning with a rate of 9.00 percent with April’s placement and ending with the current placement’s coupon rate of 7.45 percent.
In addition, for each of the year’s four placements, the size of issuance was increased over the initial volume, which Rusal credits as a continuing vote of confidence by the market in the firm’s trust in its business model and future competitiveness.
Oleg Mukhamedshin, Rusal’s Director for Strategy, Business Development and Financial Markets, explained the importance of the bond placement.
“The successful issue of ruble bonds throughout the course of this year has demonstrated the high level of trust which the investment community continues to place in RUSAL, and reinforces the current relevance of the Company’s strategic goals – such as the reduction of our carbon footprint and the introduction of technological innovations through the development and promotion of new aluminium products.”
The settlement is scheduled for next Thursday. Rusal has enlisted the aid of OJSC RUSAL Bratsk to act as issuer. Managing issuance is VTB Capital, Gazprombank, Moscow Credit Bank, Sberbank CIB, Bank Otkritie Financial Corporation, BCS Global Markets, Region BC, and Sovcombank. Gazprombank is acting as settlement agent.