On 16 August 2021, G-Group JSC placed a second bond issue worth 3 billion roubles on MOEX. The latest placement comes in the wake of a debut issuance in June 2020. During bookbuilding, the coupon rate was significantly reduced versus the initial target rate of ‘no higher than 11.50% per annum’ down to 10.60% per annum, setting the yield to maturity rate at 11.03% per annum. Demand for bonds exceeded 4.5 billion roubles during bookbuilding. The issue has a maturity of three years, with amortisation scheduled after 18 months since issuance. The issue is classified as an eligible investment option for pension savings and insurance reserves.
The Arrangers were Alfa Bank, Otkritie, Sovcombank, BCS Global Markets, ITI Capital, and Septem Capital.
G-Group JCS controls the assets of the developer group G-Group (operates under the Unistroy brand) that focuses on construction and sales of residential and commercial property, leases shopping malls and runs a hotel.
It is part of Russia’s Top 15 real estate developers and is Top 1 in Tatarstan in the housing commissioning volume. Apart from Kazan, the Company runs projects in Ufa, Tolyatti and St. Petersburg. There are plans to launch new projects in Moscow, Nizhny Novgorod, Yekaterinburg, and Samara.
"The latest issue by G-Group builds on its successful debut in the Russian debt market in June 2020. The new placement drove an even higher demand among investors, signaling a positive view on the Company’s credit risk and business model. We believe that G-Group has high chances to become a regular player in the Russian bond market,” said Denis Leonov, Head of DCM at BCS Global Markets.
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.