29.07.2022
RUSAL is the first company to issue Yuan bonds in Russia
Moscow, 29 July, 2022 – RUSAL, a leading global aluminium producer, announces first Yuan bond placement in Russia. Coupon rate is fixed at 3.9% p.a. with total value at 4 billion Yuan.
Demand for bonds exceeded offer by more than 2 times, as a result, the yield ratio was reduced by more than 1 percentage point compared to the original target.
BO-05 and BO-06 series bonds with 5 year term were registered on July 15, 2022 by the Moscow Exchange. Each placement is worth 2 billion Yuan. The nominal value of one bond is 1,000 Chinese Yuan. Coupon payments will be processed twice a year. The bond issue has an offer in 2 years.
Gazprombank, Credit Bank of Moscow and Bank ZENIT managed the issuance.
“It seems natural to us to choose Yuan denominated bonds placement, given the current situation on the financial market. We see a significant demand for such financial instruments, both from Russian banks and from private investors, for whom the transition to the Yuan is a good alternative to traditional foreign exchange investments. Increased demand and established confidence demonstrated by Company’s investors made it possible to carry out a unique and one of the most successful placements on the Russian market”, - said Alexei Grenkov, Head of Corporate Finance of RUSAL.
Demand for bonds exceeded offer by more than 2 times, as a result, the yield ratio was reduced by more than 1 percentage point compared to the original target.
BO-05 and BO-06 series bonds with 5 year term were registered on July 15, 2022 by the Moscow Exchange. Each placement is worth 2 billion Yuan. The nominal value of one bond is 1,000 Chinese Yuan. Coupon payments will be processed twice a year. The bond issue has an offer in 2 years.
Gazprombank, Credit Bank of Moscow and Bank ZENIT managed the issuance.
“It seems natural to us to choose Yuan denominated bonds placement, given the current situation on the financial market. We see a significant demand for such financial instruments, both from Russian banks and from private investors, for whom the transition to the Yuan is a good alternative to traditional foreign exchange investments. Increased demand and established confidence demonstrated by Company’s investors made it possible to carry out a unique and one of the most successful placements on the Russian market”, - said Alexei Grenkov, Head of Corporate Finance of RUSAL.
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