Cherkizovo Group (MOEX: GCHE) has successfully completed the offering of BО-001Р-07 series exchange-traded bonds with a total nominal value of RUB 7 bln maturing in three years.
Cherkizovo Group has issued BО-001Р-07 series exchange-traded bonds. With considerable demand, the order book was oversubscribed more than three times, allowing for a downward adjustment of the coupon rate spread and an increase in the offering amount from RUB 5 bln to RUB 7 bln. The offering participants included state and private banks, institutional and retail investors.
This was Cherkizovo Group's first bond offering at a floating rate. The spread of 135 bps to the current CBR key rate was record-breaking for AA-rated companies.
On July 30, 2024, the bonds were listed on the Moscow Exchange.
Gazprombank acted as the offering agent, while also leading the issue along with REGION BC, Russian Agricultural Bank, Sinara Investment Bank and SOLID Investment and Financial Company.
Previously, Expert RA upgraded the credit rating of Cherkizovo Group to ruAA, noting the Company's strong market and competitive positions and praising its liquidity and margins.
"We are pleased with the offering and would like to express our gratitude to market players for their trust in the Company. Strong demand for our bonds from high-quality investors, including major corporate managers of pension and investment funds, confirms the resilience of Cherkizovo's business, as it continues to grow steadily and deliver robust financial and operational results. We would like to thank the arrangers for their work," said Ludmila Mikhaylova, CFO at Cherkizovo Group.
The proceeds will be used to refinance unsubsidized debt.