Societe Generale Group acted as an organizer of a syndicated loan deal associated to the rates of sustainable development to RUSAL
- 31 October
Societe Generale Group as a part of a syndicate of international and Russian commercial banks acted as an organizer of a deal that grants a 5-year syndicated preexport loan (PXF) that is associated to the rates of sustainable development to RUSAL on the sum of USD 1 085 million. This deal is the first syndicated loan of the kind on the Russian market.
RUSAL plans to use the attracted funds to the partial refinancing of a current PXF loan to the sum up to USD 2 billion, granted in May 2017.
The volume of margin on the loan may vary depending on the company performance of key performance indicators in the field of sustainable development (KPI).
Key indicators relate to the environmental impact of the company and sustainable development, and include an increase in sales of ALLOW aluminium – RUSAL low carbon footprint aluminium, which uses hydropower to produce. The KPI also includes reducing the "carbon footprint" and fluoride emissions. Evaluation of performance indicators and verification by an independent specialized company will be held annually.
ING and Natixis acted as coordinating bookrunners and authorized leading organizers of the transaction. Bank of China, Crédit Agricole Corporate & Investment Bank, Societe Generale and UniCredit S. p. A. were the initial bookrunners and authorized leading organizers, Sberbank acted as the bookrunner and authorized leading organizer, and RCB Bank LTD as the initial authorized leading organizer. Intesa Sanpaolo Bank Ireland Plc and Zenit Bank (PJSC) participate as the authorized leading organizers and Raiffeisen Bank International AG as the lead organizer.
Societe Generale and Natixis act as coordinators for sustainable development indicators.
"We are very pleased with this level of confidence on the part of the investment and banking community in the company initiatives in the field of sustainable development. The strong market interest also reflects the growing global demand for low-carbon aluminum, the largest producer of which is RUSAL. The new PXF deal, associated to sustainable development indicators, confirms the priority of transparency in the production of eco-friendly product, in particular, aluminum with a low carbon footprint ALLOW, which is produced by RUSAL. In addition, this is an important step towards refinancing the debt obligations of the company, optimizing the maturity and the cost of financing," Yevgeny Nikitin, RUSAL CEO.
"Societe Generale has a large experience in both syndicated lending and sustainable development. We are pleased to have the opportunity to combine our two areas of expertise to finance one of the largest companies in Russia aimed at implementing a sustainable development strategy. We are ready to continue supporting the environmental initiatives of the company by providing high – quality services by Societe Generale," Patricia Isaeva, First Vice President of Rosbank, Managing Director of Global Banking and Advisory Russia.