RUSAL places a second tranche of bonds denominated in RMB (panda bonds). The total placement volume amounted to 500 million yuan for a period of 2+1 years with the coupon rate at 5.5% per annum, the company said.
It is expected that the location of the proposed tranche will be completed prior to 5 September 2017.
“RUSAL successfully raises funds on the bond market of China by placing a second tranche of bonds on the Shanghai stock exchange. We are happy to the permanent interest in the company by Chinese investors and the support of RUSAL, as the first foreign company to its main production assets outside of China, who offered their bonds in the domestic market,” said Director of strategy, business development and financial markets of RUSAL, Oleg Mukhamedshin.
Funds received from the placement will be used to refinance existing debt and for working capital, including purchases from suppliers in China.
China International Capital Corporation Ltd. acted as arranger and underwriter of the transaction.
In early 2017, the company has registered the issue prospectus of bonds denominated in RMB (panda bonds), totaling up to 10 billion yuan ($1.5 billion) for a period of up to seven years.
The first tranche of a total volume of 1 billion yuan for a period of 2+1 years with the coupon rate at 5.5% per annum was posted in March 2017.