On 10-14 September 2021, four issuers, including Sovcombank PJSC, Promsvyazbank PJSC, GTLK JSC, and AVTOBAN-Finance JSC, made 3 primary and 1 secondary bond placements on MOEX, with BCS Global Markets acting as the Arranger. The offerings marked the first time BCS Global Markets has arranged a bond issue for Promsvyazbank PJSC and GTLK JSC.
Sovcombank PJSC
The final coupon rate was set at 8.10% per annum (with the yield to maturity at 8.35% per annum). The size of the issue with a 3-year maturity was increased from ₽7 to 10 billion. Rated as ‘ruA А ’ by Russian agency Expert RA, the issue is classified as an eligible investment option for pension savings and insurance reserve.
Sovcombank PJSC (‘Ba1’ by Moody's, ‘BB’ by S&P, ‘BB+’ by Fitch, ‘AA-(RU)’ by А CR А , ‘ruA А ’ by Expert RA) is Russia’s major universal bank, Top 9 by assets as at 01/08/21, with a focus on retail and corporate as well as investment banking services. The lender is Top 3 among the country’s private banks. In October 2020, Russia’s Central Bank put Sovcombank on the list of systemically important banks, adding a 12th member to the top club.
Promsvyazbank PJSC
The final coupon rate was set at 8.15% per annum (with the yield to maturity at 8.32% per annum). The size of the issue with a 3-year maturity was increased from ₽10 to 15 billion. Rated as ‘АА (RU)’ by Russian agency ACRA, the issue is classified as an eligible investment option for pension savings and insurance reserves.
Promsvyazbank PJSC (‘Ba2’ by Moody's, ‘BB’ by S&P, ‘AA(RU)’ by А CR А , ‘ruA А +’ by Expert RA) is a universal bank, Top 6 among Russia’s lenders by assets and on the list of systemically important banks. It also holds the status of the defence industry bank.
GTLK JSC
GTLC JSC has completed the offer procedure for the listing of BO-08 series bonds. Driven by high demand, leading to a hefty 10x oversubscription, the benchmark price of the secondary placement was raised twice, with the final price set at 100.20% of the nominal value. The coupon rate was fixed at 8.21% per annum (the yield to put option at 8.31% per annum). The next offer is scheduled in 3.5 years. Rated as ‘BB+’ by Fitch Ratings, the issue is classified as an eligible investment option for pension savings and insurance reserves.
GTLC JSC (‘Ba1’ by Moody's, ‘BB+’ by Fitch, AA-(RU) by А CR А ) is Russia’s top leasing company, servicing government projects in transportation, and classified as one of the systemically important enterprises for the Russian economy. GTLC JSC has been a key partner for the government in establishing an efficient transport infrastructure and fostering domestic machine manufacturing.
AVTOBAN-Finance JSC
The final coupon rate was set at 8.90% per annum (yield to put option at 9.10% per annum). With a tenor of 5 years, the ₽3B issue has an option in 2 years.
AVTOBAN-Finance JSC (‘B1’ by Moody's, ‘ruA’ by Expert RA), part of AVTOBAN Group, is an SPV set up to raise debt in the Russian bond market. AVTOBAN Group is one of the largest contractors of the Russian Federal Road Agency and the state-run road construction Avtodor Management Company LLC. The company ranks among the Top 5 Russian companies in the market. With projects in 16 regions across five federal districts, AVTOBAN Group ranks among the Top 3 domestic firms in terms of the volume of road construction and assembly works.