Sberbank announces that the bid book for Rosneft’s series 002P-04 exchange-traded bonds worth 50 bln roubles was closed on February 8, 2018. The bonds are due in 10 years, the nominal value of one bond is 1,000 roubles, the bonds were placed at 100% of the nominal value. The bonds feature a 5-year buyback option.
Initially, the guidance for the first coupon was 7.60-7.70% per annum (YTP of 7.74-7.85% per annum). The guidance was reduced twice to reach 7.5-7.55% (YTP of 7.64-7.69% per annum) during the collection of bids.
More than 70 bids from investors were received, the aggregate volume of demand was around 75 bln roubles. The placement volume was increased from 15 bln roubles to 40 bln roubles and eventually to 50 bln roubles.
As a result of book building, the first coupon was set at 7.50% per annum (YTP 7.64% per annum).
Eduard Dzhabarov, Managing Director of the Debt Capital Markets Division, said: “This transaction is absolutely unique for the Russian bond market throughout its entire history. The transaction was a purely market one, bids from 70 investors were collected, including retailers, banks, management companies, and pension funds. Despite negative market developments, the weakening of the rouble on the FX market, a collapse of US stock indices, and a corrective trend on the hydrocarbon market, Rosneft managed to reach two goals at once – to attract a record amount of financing and set a low coupon rate. The success was predetermined by several factors: the optimal maturity, which was of interest to a wide range of investors (from banks to management companies), lack of high-quality offers since the beginning of the year, a low inflation rate that triggered expectation of even lower rates, a high amount of available liquidity in the financial system, lower geopolitical risks related to Russian government debt, and finally a high level of financial discipline and financial management of Rosneft.”
The technical placement will be held on Moscow Exchange on February 15, 2018. Gazprombank, Sberbank CIB1, and VTB Capital will act as placement organisers.
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