SIBUR successfully closes order book for RUB 15 bn BO-01 and BO-02 series exchange-traded bond placement

Moscow, 21 May 2020. SIBUR Holding, Russia’s largest integrated petrochemicals company, has successfully closed the order book for its BO-01 and BO-02 exchange-traded bond issues, worth RUB 10 bn and RUB 5 bn, respectively.

The final semi-annual coupon rate was fixed at 5.50% per annum, which is the lowest coupon among market placements by Russian corporate issuers historically. The par value of the bonds is RUB 1,000 each. The offering price is 100% of the par value. With a coupon period of 182 days, the bonds have a tenor of 10 years and a put option after 2.5 years.

The placement enjoyed a strong interest from investors, with demand reaching around RUB 45 bn. Leading Russian public and private banks, institutional investors and asset managers, brokers and retail investors participated in the placement.

Alexander Petrov, member of the Management Board and Managing Director for Economics and Finance at SIBUR, commented:

“We keep a close eye on opportunities to optimise our debt portfolio, and now see the market as favourable for rouble bond offerings, with the aim of diversifying our borrowings and reducing the weighted average rouble borrowing rate. The proceeds will be used to refinance existing debt. Strong investor appetite attests once again to SIBUR’s robust financial policy and our reputation as a reliable borrower, which is underpinned by high credit ratings from the leading rating agencies.”

The placement was organised by Gazprombank and Sberbank CIB, with Gazprombank also acting as the placement agent.

The technical listing of the bonds on the Moscow Exchange will take place on 28 May 2020, and they are expected to be included in the Level 2 List.