SUEK announces the closure of book-building for the placement of SUEK-Finans 10-years rouble-denominated series 001P-03R bonds, with the nominal value of RUB 21 billion and a coupon rate of 7.5% p.a. The put option is in 3.5 years.
The offering generated high demand amongst the market participants, with investors placing over 40 orders. The book was almost four times oversubscribed, which led to the decrease in the coupon rate from 7.6%-7.7% to 7.5% p.a. and the increase in the placed volume from RUB 10 billion to RUB 21 billion.
The settlement will take place on the Moscow Exchange on the 26 September 2019.
Nikolay Pilipenko, SUEK’s Chief Financial Officer, commented on the deal,
“We are glad that the market participants welcomed our bonds. Solid interest from investors enabled us to reduce the coupon rate and increase the planned placing volume. The funds raised from the placement will be used for refinancing of the current debt portfolio and corporate purposes”.
Alfa Bank, Otkritie Bank, Sberbank CIB, Region Group and Credit Bank of Moscow managed the issuance. The settlement agent is Sberbank CIB.