On March 16, 2017, United Company RUSAL Plc (UC RUSAL) successfully completed the issuance of the 2017 phase 1 corporate bonds, marking the smooth realization of the first sum of Panda Bonds, which are issued in China by an enterprise based in a country along the “One Belt and One Road”.
As the second largest producer of primary aluminum and aluminum alloys in the world, UC RUSAL is the first enterprise based in a country along the “One Belt and One Road” that has issued Panda Bonds in China. With China International Capital Corporation Ltd. (CICC) as the underwriter, the bond has a term of 3 years (with the redemption option for investor attached at the end of the second year) with the facility rating at AAA, the issuance size at RMB1 billion and the coupon rate at 5.5%. The issuance was crowned with success.
The successful issuance of Panda Bonds marks a valuable attempt made by an enterprise based in a country along the “One Belt and One Road” in financing on the capital market in China, having expanded the financing channels for similar enterprises. Next, the Shanghai Stock Exchange (SSE) will, in accordance with the deployment of the China Securities Regulatory Commission (CSRC), further deepen the opening-up of the exchanged-traded bond market and better support the construction of the “One Belt and One Road”.