Russia is going green.
Rusal, the world’s largest producer of “green” aluminum, plans to enter a five-year, $750 million sustainability linked pre-export finance facility with a group of international banks. It will be the first syndicated facility of its kind in Russia.
Rusal tapped ING and Natixis as coordinating mandated lead arrangers and bookrunners of the facility. Natixis and Societe Generale were named as sustainability coordinators.
The smelters that produce Rusal’s low-carbon aluminum, which is branded Allow, have a carbon footprint four times lower than the industry average, the company says. Rusal’s sustainability program includes a countrywide reforestation program.
The margin for the pre-export facility will depend on the company’s fulfillment of key performance indicators related to environmental impacts and sustainable developments.
Rusal CEO Evgenii Nikitin says, “This facility is further proof that the company is at the forefront of projects that are aimed at cutting down the world’s carbon footprint.”
More than 90% of the company’s aluminum is produced using hydroelectric power plants.