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Rusal Prepares For Panda Bond To Finance For New Smelter

Metal News - Published on Wed, 12 Jun 2019

Image Source: Nasdaq
Reuters reported that Rusal has told Reuters it plans to issue a Chinese yuan denominated bond, known as a Panda bond, and also a rouble bond as the aluminium giant, which was removed from a US sanctions list in early 2019, returns to raising funds. Hong Kong listed Rusal, the world’s largest aluminium producer outside China, was largely cut off from borrowing between April 2018 and January because of the sanctions imposed on it and its founder Oleg Deripaska, but was exempted from sanctions after Deripaska gave up control of the firm.

Mr Oleg Mukhamedshin, head of equity and strategic development at Rusal said that “We see that all the key banks are actively returning to us with proposals for different instruments. We are analysing them and will use these opportunities if necessary.”

Rusal, which last tapped the Chinese bond market in 2017, plans to issue the bond as soon as it obtains credit ratings from Chinese agencies.

Mr Mukhamedshin did not disclose the size of the future Panda bond but said Rusal was also preparing for a rouble bond issue in the very near future.

In its first debt issue since sanctions were lifted, Rusal raised 15 billion roubles (USD 232 million), up from an original plan to raise 10 billion roubles due to higher than expected demand.

Mr Mukhamedshin said that the final size of the upcoming rouble bond will depend on demand but the company will start again from 10 billion roubles.

Source :

Posted By : Rabi Wangkhem on Wed, 12 Jun 2019
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