ChelPipe Group successfully issued debut Eurobonds worth $300 M

Good credit history of the company and favourable market conditions attracted a great number of investors within the framework of the five-day road show in Moscow, Zurich, Frankfurt, New York and London. Consequently, in the original price range of 4.75-5%, the order book exceeded 1 bn US dollars, which made it possible to cut the rate twice and close the deal at 4.5%.

The final order book lists around 100 names including investors from the United Kingdom (30%), Russia (28%), Сontinental Europe (23%), Asia (14%) and the United States (5%). Around 52% of the bonds issued were acquired by asset management companies, funds and insurance companies, and 48% by banks and private banking.

Citi, Gazprombank, J.P. Morgan and Société Générale acted as the Joint Bookrunners and Global Coordinators, Renaissance acted as Joint Bookrunner and Sovcombank as Co-manager. The USD 300 million 4.5% Guaranteed Notes due in September 2024 were issued by Chelpipe Finance DAC, an Irish company founded for the sole purpose of issuing debt instruments and financing loans to ChelPipe Group.

ChelPipe is planning to spend the revenue from bond issue to pay back ruble loans to optimize the debenture portfolio.

— We’ve made a successful entry into the international debt financing market. The lowest dollar rate for the debut bond issue among corporate borrowers in Russia and the CIS since 2013, almost three-fold oversubscription and more than 70% orders from international investors in the final order book demonstrate good creditworthiness of ChelPipe Group, — says ChelPipe CFO Valery Borisov.

Note, ChelPipe Group places rouble bonds on the Moscow exchange — four series of exchange bonds for a total amount of RUB 25 billion are now listed.