RUSAL, the Metals business of En+ Group (LSE: ENPL; MOEX: ENPG), the world’s largest producer of low carbon aluminium and independent hydropower, announces the signing of the sustainability-linked pre-export finance facility for up to USD 200,000,000.
RUSAL, the Metals business of En+ Group (LSE: ENPL; MOEX: ENPG), the world’s largest producer of low carbon aluminium and independent hydropower, announces the signing of the sustainability-linked pre-export finance facility for up to USD 200,000,000.
Following the success of the first Russian sustainability-linked syndicated pre-export finance facility arranged in 2019 by the syndicate of international and Russian banks, the Metals business of En+ Group continues to pursue the ambitious decarbonization goals. The group of international banks continues to support the Company in its aim to develop low-carbon aluminium technologies and sustainable aluminium production.
The interest rate is subject to a sustainability discount or premium depending on the Company’s fulfilment of the applicable key performance indicators (KPIs) which will be further agreed between the parties. The loan is secured, inter alia, by the assignment of proceeds from the offtake contracts, including those for RUSAL’s low-carbon aluminium produced with hydropower under the brand ALLOW.
The proceeds of the facility were used to refinance more expensive debt. Societe Generale acted as Coordinating Bookrunning Mandated Lead Arranger. Crédit Agricole Corporate & Investment Bank and Natixis acted as Mandated Lead Arrangers. Societe Generale and Natixis also acted as Sustainability Coordinators and Crédit Agricole Corporate & Investment Bank as Sustainability Arranger.
Oleg Mukhamedshin, Deputy Chief Executive of Eт+ and RUSAL, said:
“We are very pleased to sign this new sustainability-linked financing, which again demonstrates the support from the financial community to the Group’s ESG strategy and is part of the continuing momentum we have achieved in our drive to deliver the most sustainable, low carbon aluminium on the market. As demand amongst customers grows for more sustainable and environmentally friendly aluminium, the Group is committed to driving down the carbon footprint of its products and this facility will enable us to further strengthen our ESG credentials. This is also important in view of the recently announced En+ ambition to become net zero by 2050 and to reduce greenhouse gas emissions by at least 35% by 2030.”
Stephanie Clement de Givry, Societe Generale, Global Head of Mining, Metals & Industries Finance, said:
“We are very pleased to accompany RUSAL in delivering low carbon aluminum to its buyers worldwide. By linking its commercial objectives with the structure of new facility, RUSAL is mobilizing its financial partners towards supporting sustainable metal production and greater transparency.”
The Metals business of En+ Group is the largest producer of green aluminium in the world. The smelters which produce its low-carbon aluminium ALLOW have a carbon footprint four times lower than the industry average (scope 1&2). The Group continues to pioneer the new technology which is focused on eliminating its greenhouse gas emissions.
The Company’s extensive sustainability program also includes a variety of initiatives including a country-wide reforestation programme, in which 1.1 mln trees have been planted in Siberia. In 2020, En+ Group published its low-carbon aluminium manifesto – the “Green Aluminium Vision”.
