19.02.2021

RUSAL raised USD200m under new sustainability-linked pre-export financing

Moscow, February 19, 2021 - RUSAL (SEHK: 486; Moscow Exchange: RUAL), a leading global aluminium producer, announces the signing of its second sustainability-linked pre-export finance facility for up to USD200m.

Following the success of the first Russian sustainability-linked syndicated pre-export finance facility for USD1bn arranged in 2019 by a syndicate of international and Russian banks RUSAL continues to pursue its ambitious decarbonization goals and the banking community remains confident in the Company and its sustainability objectives.

The interest rate is subject to a sustainability discount or premium depending on the Company’s fulfilment of the applicable key performance indicators (KPIs) which shall be determined by the parties. The loan is secured, inter alias, by the assignment of proceeds from the offtake contracts, including those for RUSAL’s low-carbon aluminium produced with hydropower under the brand ALLOW.
The proceeds of the facility were used to refinance more expensive Company’s debt.

Société Générale acted as Coordinating Bookrunning Mandated Lead Arranger. Crédit Agricole Corporate & Investment Bank and Natixis acted as Mandated Lead Arrangers.
Société Générale and Natixis also acted as Sustainability Coordinators and Crédit Agricole Corporate & Investment Bank as Sustainability Arranger.

Oleg Mukhamedshin, Director for Strategy, Business Development and Financial Markets of RUSAL, said: “We are very pleased to sign yet another sustainability-linked financing, this demonstrates continuous support and stamp of approval from the financial community to RUSAL’s sustainability goals and low carbon agenda. The Company is strongly committed to further decreasing the carbon footprint of its products and strengthening its ESG credentials”.

“We are very pleased to accompany RUSAL in delivering low carbon aluminum to its buyers worldwide. By linking its commercial objectives with the structure of new facility, Rusal is mobilizing its financial partners towards supporting sustainable metal production and greater transparency”, said Global Head of Mining, Metals & Industries Finance of Société Générale, Stephanie Clement de Givry.
RUSAL is the largest producer of green aluminium in the world. The smelters which produce its low-carbon aluminium ALLOW have a carbon footprint four times lower than the industry average (scope 1&2, on smelter). RUSAL continues to pioneer new technology which is focused on eliminating its greenhouse gas emissions. The Company’s extensive sustainability program includes a variety of initiatives including a country-wide reforestation programme, in which 1.1 million trees have been planted in Siberia. Earlier this year, RUSAL’s major shareholder, En+, announced its ambition to become net zero by 2050 and to reduce greenhouse gas emissions by at least 35% by 2030.
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