Rusal has completed the debut offering of Eurobond with the following key terms: principal amount of $600 million, tenor 5 years, coupon rate 5.125% per annum. The bond proceeds will be used to refinance some of Rusal’s existing pre-export finance facility and improve the company debt maturity profile.
«The company received very strong demand for the sale of its five-year bonds, enabling us to raise more than we initially planned. Despite tightening 25bps from initial guidance, the final book was almost two times oversubscribed and consisted of a strong mix of international and local accounts from all regions and was well diversified across investor types. The success of this transaction is a testament to Rusal’s credit strength and its name recognition in the investor community which builds on its IPO several years ago,» Vladislav Soloviev, Rusal’s CEO, commented.
The sale represented the lowest U.S.-dollar coupon achieved by a Russian BB-/B+ rated debut issuer, and the lowest dollar coupon by a metals and mining company globally for a benchmark B-rated issuance since 2008. Majority interest came from UK (20%), USA, Russia and Asia (each 19%), Switzerland (8%), Germany and Austria (7%), other Europe (8%). (Metalinfo/Ukrainian metal)
