Media Room
28 Oct 2022
BCS Global Markets Arranges Bond Issue for PAO Cherkizovo Group

On 27 October 2022, PAO Cherkizovo Group, a leader in Russia’s meat industry, placed another bond issue worth RUR 10 billion on Moscow Exchange, with BCS Global Markets acting as the Arranger. The first coupon rate target was no higher than 10.20% per annum but during book building the coupon rate target was lowered twice to 9.95% per annum (with the effective yield to maturity at 10.33% per annum). High investor demand drove an increase in size from RUR 5 billion to RUR 10 billion. With a maturity of 3 years, the issue was assigned an ‘A+(RU)’ credit rating by Russia’s credit agency ACRA.

PAO Cherkizovo Group (‘A+(RU)’ by ACRA, and ‘ruA+’ by Expert RA) is a major meat producer in Russia, with leading positions in the chicken, pork, turkey and sausage markets. According to the 2021 IFRS consolidated financial statements, it earned RUR 158bn in revenue, with EBITDA at RUR 29bn, and net debt / EBITDA at 2.6x.