Eurotorg successfully places new Eurobond issue
Eurotorg LLC (“Eurotorg” or the “Company”), the largest food retailer in Belarus, announces the successful placement of a new USD 300 million issue of five-year Eurobonds with an annual coupon rate of 9.00%. Completion and settlement of the transaction are expected to take place today.
The offering attracted significant investor interest, with demand amounting to around USD 650 million. More than 60 different investors were represented in the final book; and over half of them were holders of the Company’s first Eurobond issue.
Eurotorg will use the proceeds of the placement to refinance its outstanding 2017 bonds maturing in 2021-2022.
Eurotorg CEO Andrei Zubkou said: “We are pleased to have completed another successful transaction in international capital markets. The Company continues to maintain a diversified debt portfolio and sets the standard for Belarusian corporate issuers. Thanks to Eurotorg’s robust reputation as a reliable issuer with a strong investment case, most of the holders of our first Eurobond took part in the new placement. We would like to thank our investors for their trust in Eurotorg and look forward to continuing to build long-term relationships.”
Dmitry Gladkov, Global Head of Investment Banking at Renaissance Capital, said: “We have been pleased to see Eurotorg making another successful step in international capital markets, supported by some of the leading global investor names. The Сompany and the management enjoy very strong investor following and recognition and the new issue has been supported by a large number of existing investors, joined by new strong investor names, backing the credit story and business model of the leader in the Belarus market.”
Eurotorg’s new Eurobond issue was rated “B” with Stable Outlook by Fitch Ratings, and “B-” with Stable Outlook by S&P Global ratings, the same level as the Company’s corporate ratings.
The Eurobond issue was arranged by J.P.Morgan and Renaissance Capital.