Several Banks, financial firms arrange a $200 million sustainability-linked credit facility to RUSAL

The global leader of low carbon aluminium producer, Rusal has agreed to a loan amount of $200 million with the interest subject to a discount or a premium depending on the firm's achievement of key sustainability performance measures.

En+ Group, which holds a controlling stake in Rusal and produces aluminium using its independent hydropower plants, said: “The key performance indicators were still to be agreed, but confirmed proceeds from the sustainability-linked credit facility would be used to refinance more expensive debt.”

“The loan is secured by the assignment of proceeds from off-take contracts, including those for low carbon aluminium produced under Rusal's brand Allow”, the Group added.

However, the Russian low carbon aluminium producer claims the smelters which manufacturers ‘Allow’ low carbon aluminium, emits carbon four times lower than the industry average for Scope 1 and 2 emissions worldwide.

Oleg Mukhamedshin, Deputy CEO, En+ and Rusal, said: “The sustainability-linked loan demonstrated support from the financial community for the firm's environmental strategy.”

"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 given the recently announced En+ ambition to become net-zero by 2050 and to reduce greenhouse gas emissions by at least 35 per cent by 2030," Mukhamedshin added.

EN+ Group's wider low carbon aluminium and decarbonisation efforts movement has also seen the company’s commitment towards reforestation programme and as of the date it planted 1.1 million trees in Siberia.

Multiple banks and financial firms were incorporated in arranging the loan facility, including Societe Generale, Crédit Agricole Corporate and Investment Bank, and Natixis.

Stephanie Clement de Givry, Societe Generale's Global Head of Mining, Metals, and Industries Finance said: "We are very pleased to accompany Rusal in delivering low carbon aluminium to its buyers worldwide. By linking its commercial objectives with the structure of a new facility, Rusal is mobilising its financial partners towards supporting sustainable metal production and greater transparency."