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RUSAL issued AED 370 million worth of bonds for the first time

RUSAL, one of the world's largest aluminium producers, carried out Russia's first bond sale in the currency of the United Arab Emirates (UAE). RUSAL's bond issue attracted attention with an annual coupon rate of 5.95%, a placement volume of 370 million dirhams and a circulation period of 2 years.

RUSAL issued AED 370 million worth of bonds for the first time

RUSAL realised this important step through public subscription and sold 370 thousand bonds, designated BO-001R-04 series, at a nominal value of 1,000 dirhams each. This bond issue includes six-month coupon payments.

The bond issue attracted a large demand from both institutional and retail investors. The resulting demand allowed RUSAL to increase the issue volume and reduce the final coupon rate.

Payments for the new securities will be made in rubles at the Bank of Russia exchange rate.

The organiser and representative of the bond issue was JSC Gazprombank.

RUSAL Corporate Finance Director Alexey Grenkov said: ""The UAE is gaining strength as a major partner of Russia both in the financial sector and in foreign trade, so we see good prospects for the dirham, including in our domestic financial market. At the same time, placing dirham-denominated bonds for us means diversification of risks in the current situation in the financial markets, and we are trying to use all available tools."

This bond issuance follows RUSAL's two Chinese currency-denominated bond issuances in Russia in August 2022 with a volume of 4 billion yuan.

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