Media Room
09 Jul 2019
Primary bond placement of Retail Bel Finance Ltd

9 July 2019, primary bond placement of Retail Bel Finance Ltd in the amount of 5 bn rubles took place at Moscow Exchange.

The issue arrangers were BCS Global Markets, Gazprombank, Credit Bank of Moscow, Region and Renaissance Capital. The marketing range of the rate for placement was 11.0-11.5% p.a., upon completion of bookbuilding, the demand amounted to RUB 12 bn. More than 100 bids were received from a wide range of investors (banks, management companies, insurance companies, private investors). The demand from private investors amounted to about RUB 1 bn. During bookbuilding, the range of the coupon rate was lowered three times. The book was closed at a level lower than the original range limit and lower than the psychologically important level of 11.0% at 10.95% p.a.
Quarterly coupon payments as well as amortization every 6 months are envisaged for the issue, starting from the 14th coupon payment date. The tenor is 5 years.

The issue became uniquenot only because this is the first placement of a private corporate Belarus borrower in the Russian debt market, but also due to the number and quality of private investors taking part in the primary placement. The interest to this “Matryoshka bond” demonstrated by investors allows to hope that a new type of borrowers will appear in the Russian market.

Retail Bel Finance OOO is the issuer established in order to attract funding for Evrotorg ООО in the territory of Russia in accordance with the legislation of the Russian Federation. The functions of the chief executive office of the entity were transferred to ACRA Risk Management OOO.

Evrotorg OOO is the largest retailer of the Republic of Belarus (more than 20 years in the market), focusing on retail sales of food products under the Evroopt brand. The company develops various formats from mini- to hypermarkets, stores under the Brusnichka (“Lingonberry”) brand, as well as discount stores (Hit!Express) and drogeries (Maria brand), has two internet stores and 44 auto shops.

As of the beginning of July, the chain of 989 stores in 297 settlements accounted for 41% of the total food market of Belarus. The company does not have competitors operating in modern formats in 150 settlements. The revenue of Evrotorg OOO exceeds the revenue of the nearest competitor by 5 times. Evrotorg OOO has country-level international ratings (the Republic of Belarus): B/stable (Fitch), B-/positive (S&P). Besides, shortly before the bonds placement in the Russian Federation, the company had received a rating from RAEX according to the national Belarus scale – byA+/stable. The issue as such has a Russian rating assigned by RAEХ - ruA-.