Cherkizovo to hold auction for BO-03 exchange bonds worth 3 bln rubles on Nov 12

October 25, 2010


OJSC Cherkizovo Group plans to hold a placement auction for exchange bond issue BO-03 worth 3 billion rubles on November 12, Zenit Bank (RTS: ZENT), the issue's organizer, said in its materials.

The guidance for the first coupon comes to 8%-8.5%, which equals a yield at maturation of 8.16%-8.68%. The three-year bonds include semiannual coupons but do not have an offer for preterm buyback.

The face value per bond comes to 1,000 rubles.

The group decided to place exchange bond series BO-01, BO-02 and BO-03, worth a combined 5 billion rubles, in December 2009. The bonds were registered with the MICEX on December 30, 2009.

Cherkizovo Group has four full-production-cycle poultry complexes, five full-cycle hog complexes, and six meat-processing and packing plants. The group has two plants that produce compound animal feeds, and also sells product through three of its own trading houses.

The company raised $251 million with an IPO in London in May 2006. Cherkizovo is controlled by Igor Babaev and members of his family.