Press releases


UC RUSAL prices the first tranche of the panda bonds
16.03.2017

Moscow, 16 March 2017 - UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL/RUALR), a leading global aluminium producer, is pleased to announce that following a series of fixed-income investor meetings in Beijing, Shanghai and Shenzhen the first tranche of the Panda Bonds have been priced as follows: principal amount of RMB 1.0 bn, tenor 2+1 years, coupon rate 5.5 per cent per annum. The proposed offering of the Panda Bonds is expected to be completed on or about 21 March 2017.

As such, RUSAL becomes the first overseas company with global operations outside of China to enter the Chinese bond market through this placement on the Shanghai Stock Exchange.

"We are very pleased to see such a strong support from the Chinese investors: our initial plan was to proceed with RMB 500 million, but we ended up with RMB 1.0 billion. The pricing parameters are reflecting current market conditions and are attractive for a debut issuance. This pilot placement will strengthen the Company's profile inside China and will further facilitate RUSAL's longstanding collaboration with its Asian partners," Vladislav Soloviev, CEO of RUSAL commented.

The Company will apply the proceeds of the issuance for working capital needs including for procurement from Chinese suppliers, with the remainder to be used for refinancing of the Company's current indebtedness.

"Rusal's first tranche Panda Bond issuance is a milestone event in China's capital market, representing the first international private placement on the Shanghai Stock Exchange. CICC is pleased to be the sole underwriter and book runner in this landmark deal. We congratulate Rusal for this successful debut!" Mr Zhaohui Huang, Executive Vice President and Head of Investment Banking of CICC remarked.

The arranger in respect of the Panda bonds is China International Capital Corporation Ltd. as Lead Manager and Bookrunner.

Earlier this year RUSAL registered its prospectus for a Renminbi denominated bonds issue (Panda bonds), totaling up to 10 billion yuan (USD1.5 billion) with a tenor of up to 7 years. In June 2016, RUSAL was assigned an AA+ corporate credit rating with Stable outlook by CCXR, China Chengxin Securities Rating Co., Ltd., one of the largest credit rating agencies in China. Tranches of up to RMB2.4bln are fully secured by guarantees provided by China United SME Guarantee Corporation that allows for the highest AAA credit rating.


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