December 29, 2020

Cherkizovo Group closes order book for exchange-traded bonds

Cherkizovo Group has successfully closed an order book for BО-001Р-04 series exchange-traded bonds with a total nominal value of ₽6 billion (US$81.1 million) maturing in five years.

The proceeds will be used to refinance unsubsidised debt.

Industry leadership combined with Cherkizovo's solid financial performance in 2020 have underpinned robust demand for the company's bonds from institutional and retail investors, Cherkizovo said. The order book was almost twice oversubscribed, allowing the issuer to increase the issue size to ₽6 billion, with the coupon rate at 6.40% p.a.

During the book-building process, Cherkizovo received over 30 bids from investors.

On December 25, 2020, the bonds were to be placed on the Moscow Exchange.

The issue was arranged by Otkritie Bank, which also acted as a placement agent.

SOLID Investment and Financial Company was the co-arranger.

"This was our second successful bond placement in recent months. Strong investor appetite for the company's bonds speaks to their confidence in Cherkizovo's performance and our ability to demonstrate consistent growth despite macro headwinds," said Ludmila Mikhaylova, CFO at Cherkizovo Group.

"We will use the proceeds to refinance our unsubsidised debt. We would like to thank the arrangers for their hard work and are also grateful to investors for their trust and interest in the company's bonds."

- Cherkizovo