Rusal, a Russian aluminum producer listed on the Hong Kong Stock Exchange and the Moscow Stock Exchange, has issued the first Chinese yuan-denominated bond in Russia.
The 4-billion yuan five-year bonds, were oversubscribed by more than twice, resulting in yields falling over 1 percentage point from the original target, Rusal said in a statement. Gazprombank, Credit Bank of Moscow, and Bank Zenit managed the placement.
“It seems natural to us to choose Yuan-denominated bonds placement, given the current situation on the financial market. We see a significant demand for such financial instruments, both from Russian banks and from private investors, for whom the transition to the Yuan is a good alternative to traditional foreign exchange investments,”said Alexei Grenkov, Head of Corporate Finance of Rusal.
Increased demand and established confidence demonstrated by Company’s investors made it possible to carry out a unique and one of the most successful placements on the Russian market.”