On 21 May 2021, JSC ‘LC ‘Europlan’ placed bonds worth 10 billion roubles on MOEX, with BCS Global Markets acting as the Arranger.
The first coupon rate target during the marketing process did not exceed 8.10% per annum. As part of bookbuilding, the final coupon was reduced to 7.80% per annum, with the yield to maturity at 8.03% per annum. The bond issue has a maturity of three years, with amortization set for the final two years. It was assigned ‘A+(RU)’ bond rating by Russia’s rating agency ACRA.
JSC ‘LC ‘Europlan’ (‘BB’ by Fitch, ‘A+(RU)’ by ACRA) is a leader in passenger car leasing. It holds the 1st place in Russia in passenger car leasing volumes as of 9M 2020, according to Expert RA, as well as the 1st place in terms of the volume of new business in cars and trucks. The sole shareholder of Europlan is the financial and industrial group Safmar controlled by Mikhail Gutseriev, which has assets in commodities (oil), insurance, construction and development, as well as retail. Due to COVID-19 restrictions, sales of passenger cars and LCVs declined in Russia in 2020, but the Company's leasing portfolio continued to grow. The portfolio consists of passenger cars (46.6%), commercial vehicles (33.1%), and mobile machinery (10.7%).
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.