Rusal gets back to action after sanctions; prepares for a Panda bond and a rouble bond to raise fund

According to Reuters, Rusal plans to issue a Chinese yuan-denominated bond, called a Panda bond and a rouble bond in order to raise fund for a new smelter. The world’s largest aluminium producer outside China was barred from borrowing during the sanctioned period.  Now that the sanctions are lifted after Deripaska gave up control of the firm, the company is back to raising funds.

“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,” said Oleg Mukhamedshin, head of equity and strategic development at Rusal.

Rusal last tapped the Chinese bond market in 2017. The company will issue the bond once it gets credit ratings from Chinese agencies.  Rusal raised 15 billion roubles ($232 million) in its first debt issue after the sanctions were lifted.

Mukhamedshin said that Rusal will start again from 10 billion roubles for the upcoming rouble bond and final size will depend on demand. Rusal has stated that business is back to normal after the sanctions and there are no major debt repayments coming up.

Rusal also plans to raise funds to build its Taishet aluminium smelter in Siberia. The company expects to get 60 billion roubles ($926 million) for this project from a syndicate of Russian banks by the end of 2019.

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