Cherkizovo Group closes order book for RUB 6.3 bln BO-001P-03 series exchange-traded bonds

September 18, 2020

Moscow, Russia – September 17 – Cherkizovo Group (MOEX: GCHE) has successfully closed an order book for BО-001Р-03 series exchange-traded bonds with a total nominal value of RUB 6.3 bln maturing in 3.5 years. The proceeds will be used to refinance unsubsidized short-term debt and fund M&A activities.

A strong credit profile combined with the industry leadership of Cherkizovo Group remains highly valued by the investment community and has created demand for the bonds from institutional and retail investors. As a result, the issuer was able to set a coupon rate at 6.20% p.a, the lowest ever rate secured by the Group in the local debt market.

The Group received more than 20 bids from investors.

On September 18, 2020, the bonds will be placed on the Moscow Exchange.

The issue was arranged by Otkritie Bank and Sberbank CIB. Otkritie Bank also acted as the placement agent.

Earlier, the Analytical Credit Rating Agency (ACRA) assigned an A+(RU) credit rating to Cherkizovo Group, calling the Group’s outlook “stable”. The agency acknowledged Cherkizovo’s robust liquidity and profitability, which it believes may continue gradually growing in 2020–2022.

“We are happy with how the placement went and delighted that the bond issue received a positive market response. For us, this is testament to the resilience of our business model and the confidence investors have in our strategy. We will use the proceeds to refinance an existing bond issue and fund M&A activities. We would like to thank the arrangers for their work,” said Ludmila Mikhaylova, CFO at Cherkizovo Group.