Eurotorg LLC announces pricing of USD 350 million debut loan participation notes

Subject to certain exceptions, not for release, publication or distribution, directly or indirectly in the United States of America, Australia, Canada, Japan, the Russian Federation or any other jurisdiction where to do so would be unlawful

Minsk, 19 October 2017 – Eurotorg LLC announces that Bonitron Designated Activity Company has successfully priced USD 350 million aggregate principal amount of loan participation notes with an annual coupon rate of 8.75% per annum maturing on 30 October 2022 (the “Notes”). The Notes will be issued by, with limited recourse to, Bonitron Designated Activity Company for the sole purpose of financing a loan to Eurotorg LLC. The Notes are expected to be rated “B-” by Fitch and “B-” by Standard & Poors. The closing and settlement are expected to be completed on 30 October 2017.

The issue of the Notes is the first ever Eurobond placement by a Belarusian corporate issuer. Eurotorg LLC intends to use the proceeds of the transaction primarily to refinance existing debt, and for general corporate purposes.

Andrei Zubkou, CEO of Eurotorg LLC, said: “Our debut offering was very well received by investors, which reflects the strength of our business and its potential for further growth going forward. We saw significant demand from a broad range of high-quality investors from Asia, Europe, the United States and Russia, and the order book was several times oversubscribed. Thanks to this diversified demand, we were able to significantly reduce the coupon from our initial guidance.

“We are pleased to have been able to capitalise on the opportunity established by Belarus’s successful sovereign Eurobond this summer. By becoming the first corporate issuer from our country to access international capital markets, we have established a precedent and benchmark for others to follow. We believe that this opens the market for more high quality Belarusian issuers, and will make a positive contribution to the development of the country’s investment environment and economy as a whole.”

For further details, please contact:

Investor Relations

Andrei Matsiavin
Eurotorg, Chief Investment Officer
+375 44 500 65 45

Katerina Sheleg
Eurotorg, IR specialist
+375 44 500 94 95

International Media

Denis Denisov
EM, Moscow
+7 985 410 3544

Peter Morley
EM, London
+44 7927 186 645

About Eurotorg

Eurotorg is the largest grocery retail chain in Belarus, with a market share of 19% (2016). The Company’s business was established in 1993 in Minsk. Today Eurotorg operates 460 stores under the Euroopt and Brusnichka banners in several formats (hypermarkets, supermarkets and convenience stores).

The Company’s strategy, based on offering a focused assortment of high turnover products at market-leading prices, delivers a value proposition that is well-tuned to the needs of Belarusian consumers. Every day about 900,000 customers make purchases at Eurotorg stores across 123 cities and towns in Belarus.

In 2016, the Company reported revenue of BYN 3.64 billion (USD 1.83 billion based on the average National Bank of Belarus exchange rate for 2016).

A brief video about Eurotorg’s business can be viewed here.

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