Russian aluminium firm Rusal has tapped the international market for the first time since its 2009 US$16.8bn restructuring.

The world’s largest aluminium producer has agreed the main terms and conditions of a one-year US$300mn trade finance line with a club of international banks.

BNP Paribas, ING, Natixis, Crédit Agricole, Société Générale and UniCredit will act as mandated lead arrangers for the deal, with BNP Paribas taking on the extra responsibility of facility agent and collateral agent.

The funds will be primarily used to finance aluminium exports, as well as providing additional liquidity.

The loan is secured against aluminium and aluminium products receivables and a pledge of goods in turnover.

“This is the first deal after we completed the restructuring of our loan portfolio in December 2009. It marks the return of Rusal to the credit markets and indicates a growing confidence in the company from the international finance community,” says Oleg Mukhamedshin, director of capital markets at the aluminium company.

Rusal would not comment further on the deal when contacted by GTR.

“This deal indicates a growing confidence in the company from the international finance community.”

At the time of publication, aluminium was trading at US$2,327 a metric tonne, up from around US$1,850 a metric tonne in June 2010.

Meanwhile, in 2011, Rusal is likely to become the second foreign enterprise to float renminbi (Rmb) bonds in Hong Kong.

BNP Paribas and Bank of East Asia are reported to be arranging the issuance, though neither bank has either confirmed or denied this.

The bonds will consist of three and five-year tenors.

The first foreign business to float Rmb bonds in Hong Kong was the McDonald’s Corporation, which floated Rmb200mn in Rmb-denominated bonds.

Both the bond issuance and the credit line follow Rusal’s US$2.24bn IPO on the Hong Kong stock exchange in January.
Rusal was launched at a share price of HK$10.80.

Since then, shares have failed to attract a massive amount of positive investment.

The price dropped by around 40% to a low of HK$6.72 in late June during worries about the company’s debts, but managed to rally to HK$11.06 in December to give a 12-month return of 2.4%.