Eurotorg successfully places second issue of RUB-denominated bonds

Eurotorg LLC (“Eurotorg” or the “Company”), the largest grocery retailer in Belarus, today announces the successful placement of an additional RUB 5 billion issue of its series 01 unsecured bonds. As a result of the bookbuilding, the bonds were placed with a premium to face value at a price of 103%.

The issue was almost two times oversubscribed. As a result of the placement, the total volume of the bonds in circulation stands at RUB 10 billion.

Completion and settlement of the transaction took place on 30 September. The bonds have been admitted to listing on Moscow Exchange.

Eurotorg CEO Andrey Zubkov said: “We are continuing to diversify our debt portfolio, and are constantly looking for ways to optimise our repayment schedules, reduce interest rates and increase the share of unsecured credit. Following our successful debut in the Russian bond market in July, we have seen high levels of interest from Russian investors, resulting in a significant increase in the price of our bonds in the secondary market. As we have previously said, entering the Russian securities market is not a one-time deal – it is just the first step. Today’s transaction confirms our intention to build long-term relations with investors in Russia. We hope our success will serve as a good example for other high-quality Belarusian companies to join our bonds and the sovereign bond issue in representing our country in the market.”

Denis Shulakov, Senior Vice-President at Gazprombank, commented: “Eurotorg’s latest offering once again saw high levels of interest from a wide range of investors, including international investors. There were dozens of bids from institutional investors as well as more than 200 individual investors. Eurotorg’s second successful placement in the Russian debt market underscores investors’ belief in the Company and once again illustrates the Russian market’s high-quality infrastructure and ability to successfully absorb issuance by international companies on a regular basis. By doubling its bond issuance to RUB 10 billion, Eurotorg has created a liquid benchmark for new corporate borrowers from Belarus and other countries that are considering raising debt capital in Russian roubles.”

Alexey Konochkin, Deputy Head of Debt Capital Markets at VTB Capital, said: “MKB Bank is actively working with companies from countries belonging to the Eurasian Economic Union, and offers various forms of financing based on the current needs of each client. In this case, a deal involving MKB will help the Company to optimise its debt portfolio. The Bank has been working with Eurotorg for a long time. Previously we provided the company with working capital loan, and acted as an organiser of the Company’s bonds issue. Eurotorg is currently one of the best borrowers in Belarus and a leader in the food retail segment. We are highly interested in continuing our cooperation.”

In May 2019, Eurotorg became the first non-Russian company to receive a credit rating from a Russian rating agency. Expert RA assigned a rating of ruA- for the Company’s issue of bonds in Russian roubles, with a Stable outlook. The agency also assigned the Company an issuer credit rating of byA+ with a Stable outlook.

The bonds were issued by Retail Bel Finance LLC. The organisers were BCS Global Markets, VTB Capital, Gazprombank, Moscow Credit Bank, Region Group, Renaissance Capital and Sovcombank. LECAP acted as legal adviser. LCPIS has been appointed as the bondholders’ representative in accordance with Russian law.

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