The size of the second issue of the rouble-denominated bonds by Novotrans (series ‘001Р-02’) on MOEX was set at 5 billion roubles. The book-building process was finished on April 20.
The final target rate for the first coupon of series ‘001Р-02’ was set at 9.15% per annum, with the yield to maturity at 9.47% per annum. The amortized bond issuе has a maturity of five years, with 12.5% of the face value to be redeemed on the due dates for 13-20th coupons. The official placement on MOEX will take place on April 22.
“This is a second successful bond placement on the Moscow Exchange for Novotrans. Despite the challenges the debt market is facing right now we were able to oversubscribe the issue. We thank our partners, i.e. BCS Global Markets, VTB Capital, MKB, SKB-Bank and Sovcombank, which acted as the Arrangers to help us raise funds on favorable terms,” said Alina Goncharova, Chairman of the Board of Directors of Novotrans.
“BCS Global Markets has been privileged to act as the Arranger of a bond issue by Novotrans for a second time. We believe it was a successful transaction and have a positive outlook for the issuer’s presence in the capital markets going forward,” said Alexey Gonus, co-CEO of BCS Global Markets.
Rating agency Expert RA assigned the credit rating of the second bond issue of Novotrans at 'ruA,' and also confirmed the credit rating of Novotrans at the level of ‘ruA.' The outlook on the rating is stable.
The debut five-year bond issue (series ‘001P-01’) took place in December 2019, with the placement size exceeding the planned amount, totalling 6 billion roubles due to stronger-than-expected demand.
Novotrans is one of Russia’s largest private transportation holding companies, operating 24 firms across Russia and the CIS.
Novotrans offers the full range of services including railway freight operations thanks to in-house rolling stock, carriage maintenance, logistics solutions for third-parties, traffic handling, and stevedoring operations. The company has remained among the Top 10 as an operator and carriage repair provider for many years, and is also recognized as Russia’s Top 10 enterprises in terms of investment efficiency. Its total freight car rolling stock is more than 25,000 units.
In-house repair capabilities are represented by four high-tech firms in the Moscow Region, Irkutsk Region, Kemerovo Region, and the Altai Region.
The Ust-Luga Sea Port in the Leningrad Region will become the site for Russia’s largest multi-purpose terminal LUGAPORT, with a capacity of 24.3 m tonnes a year. Stevedoring firm Novotrans has been contracted at the Ust-Luga ferry centre by Rosmorport, a state-owned enterprise in charge of all ports in Russia, to provide stevedoring and warehousing services.
A message from management of BCS Global Markets
The continuously evolving nature of the global coronavirus situation has meant we at BCS Global Markets (BCS) are taking all necessary steps to keep business disruption to an absolute minimum.
Effective from today (Wednesday 18th March) employees from all divisions of the business based in our Russia, UK, USA and Cyprus offices who can work from home without creating any even minor possible risk for business continuity of the Group will be working remotely. It is very much business as usual at BCS. Our employees are equipped with secure access to our systems and will follow their normal working hours, keeping in regular contact with their colleagues and clients.
Despite ongoing disruption caused by COVID-19, we want to also assure you that following a sustained period of positive performance, our capital and liquidity position remains very strong. The business is well-placed to meet any subsequent financial challenges and will continue to go above and beyond for our clients.