MOSCOW (MRC) -- SIBUR, the largest petrochemical complex in Russia and Eastern Europe, has announced that it has successfully closed the order book on a BO-03 exchange-traded bond issue totalling Rb10 bln, said the company on its site.
The books closed at the lower end of the final guidance range, with the coupon set at 7.65% per annum and the issue enjoying best-in-class distribution at this coupon rate. The issue achieved the narrowest spread to OFZs (ruble-denominated Russian Treasury bonds) on the local bond market in the Company’s history.
The bonds have a par value of Rb1,000 each. The offering price was 100% of the par value. The bonds have a coupon period of 182 days and a tenor of 10 years, with an option to call the bonds or reset the interest rate after four years.
The placement drew strong investor interest, with more than 60 orders and total demand exceeding Rb55 bn. Leading Russian public and private banks, non-government pension funds, investment and asset managers, insurance companies, brokers and retail investors took part in the placement.
Member of the Management Board and Managing Director for Economics and Finance at SIBUR Peter O'Brien commented on the event: “This bond issue is a logical next step in our team’s ongoing work to manage liquidity and optimise the Company’s debt portfolio in line with the current expectations of SIBUR’s projected cash flows. Thanks to the attractive levels of liquidity present on the Moscow Exchange and the speed with which we are able to issue a new instrument in accordance with our established bond documentation, in one day we collected an order book that was more than five times oversubscribed with demand at the tightest spread to OFZs in the Company’s history. This transaction further evidences the level of interest and confidence in SIBUR’s credit profile amongst a wide range of investors including pension funds, financial institutions and individuals.”
The placement was led by Gazprombank, Sberbank CIB and UniCreditBank. Gazprombank also acted as the placement agent. The bonds will begin trading on Moscow Exchange on 13 July 2021 and included in MOEX’s Level 2 Quotation List.
As reported earlier, in May 2020, SIBUR Holding closed the order book for the placement of exchange-traded bonds of two series in the volume of Rb10 and 5 billion, respectively. Based on the results of the book formation, the semi-annual coupon rate was set at 5.50% per annum, which is the lowest coupon among the market issues of corporate issuers in the entire history of the modern Russian public debt market. The nominal value of one bond is Rb1,000. The placement price is 100% of the face value. The maturity date is 10 years from the date of commencement of the placement. The coupon period is 182 days. The term until the offer is 2.5 years.
As MRC informed previously, SIBUR is ready to quickly conduct an initial public offering (IPO) upon receipt of an appropriate decision of shareholders, the company is structurally ready for placement, the head of the company Dmitry Konov said to reporters in sidelines of the international industrial exhibition "Innoprom". At the same time, in case of an IPO, SIBUR may place its shares on the Moscow Exchange, D. Konov added.
It was also reported that in June,, 2021, the international rating agency S&P Global Ratings confirmed the long-term issuer default rating of the Russian petrochemical company SIBUR at "BBB-" with a "stable" outlook.
SIBUR manufactures and sells petrochemical products on the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.)