Moscow, 25 March 2016. On 22 March 2016, SIBUR Holding successfully closed the subscription book for its Series 10 bonds in the amount of RUB 10 bn. With a coupon period of 182 days, the bonds have a tenor of 10 years and a put option in 5 years. The par value of the bonds is RUB 1,000 each. The offering price is 100% of the par value.
The original guidance for the first coupon rate ranged from 10.75 to 11.00%. The enthusiasm investors showed during the book building made it possible to revise the coupon guidance downwards four times. First, it was reduced to 10.60–10.85%, second – to 10.50–10.70%, third – to 10.50–10.60%, and finally – to 10.50% per annum.
The marketing brought about 53 investor bids, whereas the total demand for the bonds exceeded RUB 30 bn.
Book building set the first coupon rate at 10.50%. Given the market situation, offering price, coupon rate, and demand for the bonds, the Company decided to accept 41 investor bids.
The opportunity to subscribe for SIBUR Holding’s bonds received considerable attention from the investor community due to the optimal yield to risk ratio (the Company is rated Ba1 credit rating by Moody’s and BB+ rating by Fitch) and investor education efforts of the Company and lead managers during the pre-marketing stage. The emergence of SIBUR as a new high quality issuer in the Russian debt capital market also contributed to the success of the book building.
The favourable environment allowed closing the book with a discount of 50 basis points to the CBR key rate and made it a record breaker with the lowest coupon rate in the overall corporate market since June 2014 and the lowest coupon rate for 5-year offerings since November 2013.
The formal offering is scheduled to take place at MICEX on 29 March 2016.
Lead managers: Sberbank CIB, Gazprombank, Rosbank and UniCreditBank.
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