MOSCOW: Russian aluminium giant Rusal is looking for a benchmark size for its debut US-dollar denominated Eurobond issue, two financial market sources told Reuters.
On Friday, Rusal started investor meetings in Europe, North America and Asia testing appetite for its planned Eurobond issue which will have a tenor of up to five years.
For a company of Rusal size, benchmark size starts from $500 million. The company plans to use proceeds from the Eurobond issue to refinance part of its debt, one of the sources said.
Rusal's net debt was at $8.3 billion at the end of September. Rusal declined immediate comment.
Rusal said in September that along with Eurobond issue it was also considering a debut Chinese yuan-denominated bond and the use of multi-currency bond programme previously registered in Russia for repayment of $1.2 billion of its debt in 2017.
Rusal, the world's second largest aluminium producer after China's Hongqiao, is controlled by Russian tycoon Oleg Deripaska and part-owned by Glencore. It owns a stake in a nickel and palladium producer Nornickel.
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