On 10 November 2022, Russia’s timber industry leader Segezha Group PJSC placed a debut issue of CNY-denominated exchange-traded bonds worth CNY 500 million on Moscow Exchange, with BCS Global Markets acting as the Arranger. The first coupon rate target was set at not higher than 4.50% per annum but during book building the final coupon was fixed at 4.15% per annum (with the effective yield to put at 4.22% per annum). With a maturity of 15 years and a put option in three years, the issue was assigned an ‘ruA+ (EXP)’ expected credit rating by Russia’s credit agency Expert RA.
Segezha Group PJSC (‘ruA+’ by Expert RA) is a unique Russian timber industry holding with a full cycle of timber operations and a wide range of high-margin wood products. The company has promoted the use of sustainable technology for deep processing of timber and a circular business model, trimming operational waste. According to the 2021 IFRS consolidated financial statements, it earned RUR 92.0bn in revenue, with OIBDA at RUR 29bn, and net debt / OIBDA at 2.1x.
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.