RUSAL , Aluminium | 02 August 2017 г. | 14:00

Rusal is preparing to issue Panda bonds

Rusal is preparing to issue Panda bonds
Rusal has announced that it has registered its prospectus for a Renminbi denominated bonds issue (Panda bonds), totaling up to 10 billion yuan ($1.5 billion) with a tenor of 7 years.

Rusal becomes the first overseas company with global operations outside of China that is seeking to offer bonds to investors within the Chinese debt market through this placement on the Shanghai Stock Exchange.

Rusal can take the bond placement decision in the next 12 months following the registration of the prospectus. In June 2016, Rusal was assigned an AA+ corporate credit rating with Stable outlook by CCXR, China Chengxin Securities Rating, the largest credit rating agency in China. Tranches of up to RMB2.4bln are fully secured by guarantees provided by one of the largest guarantee agencies that allows for the highest AAA credit rating.

A certain portion of the proceeds from the planned bonds placement may also be used in China for the procurement of materials needed for Rusal’s enterprises.

“The Asian market and China in particular, has always been an important strategic location for Rusal. This is why we chose to conduct the Company’s listing on the Hong Kong Stock Exchange in 2010. Today, we are actively developing our business in the region, both directly and in partnership with the largest Chinese companies.

The recent successful placement of Eurobonds totaling $600 mln is evidence of the recognition and confidence in Rusal from a wide range of international investors, most notably those from the Asian region. I am confident that the planned issue of Panda bonds as a risk free instrument will also be very attractive for Chinese investors and will further facilitate Rusal’s longstanding collaboration with its Asian partners,” commented Vladislav Soloviev, Rusal’s CEO.

Rusal has been actively strengthening its presence in the Chinese market. In 2013, a strategic partnership agreement was signed between Rusal and Chalco, the largest aluminium company in China. RUSAL also holds 33% charter capital in Shenzhen North Investments, the daughter company of Norinco, which has a longstanding background of selling aluminum, alloys and other non-ferrous metals in the Chinese market. In June 2016, Rusal and Hebei Joy Sense Cable Co., a leading manufacturer of cables production from aluminium alloys in China, signed an agreement to set up a joint venture Rusal-Hebei Joy Sense Cable Special Aluminium Products.

Source: Metal Supply and Sale Magazine
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