Sovcombank Acts as Co-arranger of EuroChem's $700m Eurobond Issue

MOSCOW, April 10, 2019 /PRNewswire/ -- In March 2019, EuroChem Finance Designated Activity ? a special-purpose vehicle (SPV) created to raise funds in the capital markets for the needs of EuroChem Group ? placed a Eurobond issue. The total par value of the placed Eurobonds is $700 million, with the repayment period of five years ? until March 13, 2024. The fulfilment of obligations on securities is guaranteed by the Swiss company EuroChem Group AG, as well as by EuroChem MCC JSC.

The order book had been opened on March 6, 2019, with the initial price guidance in the 5.875% area. Due to high demand, EuroChem Group was able to revise the price guidance twice and set the final coupon rate at 5.50%. The final book was twice oversubscribed.

It is the largest issue of debt securities by a Russian corporate borrower with a non-investment grade credit rating since June 2017, and the first Eurobond offering since February 2018 for this type of issuers.

Citigroup and JP Morgan acted as joint global coordinators of the Eurobond issue. Citigroup, JP Morgan, Sberbank CIB, Société Générale, UniCredit and VTB Capital acted as joint arrangers (managers) and bookrunners.

Sovcombank PJSC acted as a senior co-manager, while Sova Capital Limited acted as a co-manager.

Sovcombank PJSC is a private bank with assets of 863 billion roubles and the capital of 113 billion roubles in accordance with IFRS. The bank employs 16,000 employees in 3,000 branches and offices in 75 regions, located in 1,052 towns of the Russian Federation.

SOURCE Sovcombank