On November 20, Cherkizovo Group closed an order book for BО-001Р-02 series exchange-traded bonds with a total nominal value of RUB 10 bln maturing in 3.5 years after the date of purchase. The bonds received the expected ruA (EXP) credit rating from RAEX (Expert RA) rating agency.
A strong credit profile combined with industry leadership have created considerable demand for the bonds from all types of retail investors. The bonds were oversubscribed by more than 3x above the initial target allowing the issuer to cut the coupon rate to 7.50% p.a., while also increasing the offering to RUB 10 bln. The coupon rate hit the lowest point ever in the Cherkizovo Group’s borrowing history in the local debt market.
More than 40 bids were submitted by investors.
On November 28, 2019, the bonds will be placed on the Moscow Exchange.
The bond issue was arranged by Credit Bank of Moscow, Otkritie Bank, Raiffeisenbank, Sberbank CIB and Sovcombank.
Co-arrangers were Russian Regional Development Bank and PERESVET Bank.
Raiffeisenbank acted as a placement agent.
“We are happy with the results of today's placement. The market has confirmed the reliability and resilience of our business. After disappearing from the public debt market for quite a while, we were able to draw attention of a vast range of retail and institutional investors and, coupled with a favourable market environment, secured strong demand for the bonds, way above the initial offering. The Company plans to use the proceeds for short-term debt refinancing. Cherkizovo Group would like to thank investors for interest in our bonds,” said Ludmila Mikhaylova, CFO at Cherkizovo Group.