Aluminium giant Rusal plans 10 billion yuan panda bond issue in Shanghai
Russian aluminium producer to be first foreign firm to sell panda bonds on Shanghai bourse
Companies are shifting from Hong Kong’s dim sum bond market to the mainland when it comes to issuing yuan-denominated debt to take advantage of cheaper costs, higher liquidity and greater exposure to investors, according to analysts.
Panda bonds are yuan-denominated debt issued by foreigners on the mainland, while dim sum bonds refer to yuan debt in the offshore market.
The world’s largest aluminium producer outside China has registered its prospectus for a bond issuance on the Shanghai exchange, and can trigger the bond placement decision within a year, according to the company statement.
The proceeds raised will mainly be used for procurement of materials in China, it said.
“The Asian market, and China in particular, has always been an important strategic location for Rusal. We are actively developing our business in the region, both directly and in partnership with the largest Chinese companies,” said Rusal chief executive Vladislav Soloviev.