May 22, 2020 – ALROSA announces that it has successfully closed the deal to offer a sizable amount of rouble exchange-traded bonds with a record-low for today’s market coupon rate, which attests to the Company’s excellent credit quality.
Technically, BO-03, BO-04, BO-05, BO-06 and BO-07 series exchange-traded bonds were placed on 22 May 2020, with the order book closed on 20 May. The RUB 25 bn bond issue will mature in 5 years and the coupon rate is fixed at 5.75% per annum.
“The Company managed to close one of the largest transactions in the local market this year,” said Alexey Philippovskiy, ALROSA’s Deputy CEO. “The coupon rate of 5.75% per annum means a 91 bp spread to the federal loan bonds (OFZ) benchmark. This is lower than similar yields of our peers with a comparable credit rating in the secondary market, which is indicative of investor confidence in both the financial health of our Company and prospects of the diamond market as a whole. In recent years, we have been focused on enhancing our financial resilience, and today’s success only proves that investors have appreciated our efforts.”
The bond issue was led by VTB Capital, Sovcombank, Gazprombank, and Rosbank, with VTB Capital also acting as a technical underwriter.
The proceeds will be used for general corporate purposes.