Eurotorg again successfully places bonds on Moscow Exchange

Eurotorg LLC (“Eurotorg” or the “Company”), the largest food retailer in Belarus, has successfully issued a RUB 3.5 billion five-year unsecured bonds. The quarterly coupon was set at 10.35% per annum.

Andrey Zubkou, Eurotorg CEO, said: “We are pleased to announce that a new Eurotorg’s bond placement was successfully completed on Moscow Exchange on March 11, 2021. The new issue generated strong investor interest, with total bids of around RUB 5.5 billion.

The bond placement will allow to hedge currency risks to a certain extent by increasing both RUB share in our debt portfolio and its maturity. Moving forward, we will stand by proactive debt management policy, which has proven its effectiveness”.

Denis Shulakov, First Vice President at Gazprombank, commented: "This is Eurotorg's first deal in the Russian bond market this year and the fourth since 2019. The bond placement has required careful planning and was met with interest by both institutional and retail investors. With the new issue, the Company solved an important task of forming a secondary market yield curve (now there are 3-year, 4-year and 5-year outstanding bonds), which will serve as a guide not only for the Company's new bond issues, but also for other potential borrowers from the Republic of Belarus”.

Gazprombank, SKB-bank, BCS Global Markets, MKB, Sovcombank, Renaissance Capital and UNIVER Capital acted as mandated lead arrangers. Gazprombank was the placement agent. LECAP acted as a legal advisor. LCPIS has been the bondholders’ representative in accordance with Russian law.