Rusal enters into a sustainability linked syndicated finance facility by Russian international banks

RUSAL, a leading global aluminium producer has announced its plan to enter into a new five-year USD 750 million Sustainability Linked Pre-Export Finance (PXF) facility. It is for the first time such a syndicated facility is arranged by international commercial banks in Russia.

The proceeds of the facility will be used to partly refinance the principal outstanding under the existing up to USD 2 billion pre-export finance facility that was drawn in May 2017.

“This sustainability linked Pre-Export Finance facility is further proof that the Company is at the forefront of the projects that are aimed at cutting down the world’s carbon footprint. We are glad to see the appreciation of the Company’s comprehensive sustainability initiatives from the banking community. For us this transaction is not only another important step towards the refinancing of the Company’s debt optimizing maturities and financing costs, but also proves the support we have for our ecological strategy from the experts in that field”, said Evgenii Nikitin, RUSAL’s CEO.

ING and Natixis will work as Coordinating Mandated Lead Arrangers and Bookrunners of the facility for Rusal. Natixis and Societe Generale are acting as Sustainability Coordinators.

The margin of finance offered will depend on Rusal’s fulfilment of key performance indicators related to environmental impacts and sustainable operations.

The syndicate was launched in early September and the Russian and international banks active on the Russian syndicated loan market took interest in the facility. It will be closed by mid-October and as of today; Rusal has received commitments for a total amount of USD 725 million, subject to satisfactory documentation.

RUSAL is the largest producer of “green” aluminium in the world fuelled by hydropower. Its low carbon aluminium, ALLOW, has a carbon footprint four times lower than the industry average. Rusal continues to invest on R&D on carbon emission and other sustainability programme.

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