RUSAL reported the fulfillment of the sustainability key performance indicators for 2019 and the reduction of margin under the sustainability-linked syndicated pre-export finance facility
Moscow, 29 July 2020 - RUSAL (SEHK: 486; Moscow Exchange: RUAL), one of the leading global aluminium producers, confirmed compliance with the 2019 target levels of the sustainability key performance indicators (KPI) under the sustainability-linked pre-export finance facility for USD 1,085,000,000 signed in October 2019. The 2019 target levels are reached or exceeded and therefore the interest rate is subject to a sustainability discount.
Sustainability KPIs are related to the Company’s environmental impact and sustainable development and include the growth targets of ALLOW aluminium sales – RUSAL’s low-carbon aluminium produced with hydropower.
Other KPIs also cover the reduction of carbon footprint and decrease of fluoride emissions. They are measured annually and verified by an independent and specialized third party.
The Company is entitled to a sustainability discount which reduces the interest rate to 2.1%. The sustainability discount is applicable until the next review and reporting on the KPIs which is due around the middle of 2021.
“We are glad to confirm the fulfilment of the Company’s targets towards the reduction of emissions and the growth targets of sales of RUSAL’s low-carbon aluminium m ALLOW. We have remained committed to maintaining the high level for best ESG practices and achieved sustainable development goals, which is also noted by independent experts and international ESG rating agencies. We are happy to see that the link to the Company’s sustainability initiatives could be successfully embedded in the financing instruments. Despite all the current market turbulence and the challenging times that the world economy faces as a result of the COVID-19 pandemic, we remain committed to our social and environmental goals, which will always be an integral part of our corporate strategy”, said Oleg Mukhamedshin, RUSAL’s Director for Strategy, Business Development and Financial Markets.