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Moscow, 18 June 2020 – ALROSA, the world leader in diamond mining, has announced that book building for its $500 m 7-year Eurobond issue is complete. The coupon rate is 3.1%.
The book was closed on 17 June, with demand exceeding supply by over three times. Investors from continental Europe, UK and Russia bought 33%, 25% and 20% of the issue, respectively. The remainder went to Asian and MENA, and US investors (11% for each group). The split by type was as follows: asset managers and funds – 62%, banks – 28%, insurance companies – 6%, and hedge funds – 4%. The issue was rated at the investment grade of Baa2 by Moody’s, BBB- by Fitch and BBB- by S&P and arranged by J.P. Morgan, Societe Generale, VTB Capital and Gazprombank.
“Thanks to the solid demand from Russian and international investors, the initial coupon range of 3.375–3.5% was revised to 3.1% in two stages, with the issue more than twice oversubscribed. The final coupon rate is the lowest in the history of Russia's Metals and Mining sector and among 7-year placements issued by global Metals and Mining companies since 2013. It is also the lowest for CEEMEA corporate borrowers with a similar profile since 2016. The success of this deal proves that investors recognise our strong credit quality, prudent financial policy, leadership positions in the global diamond market, as well as robust corporate governance and best in class transparency,” said Sergey Ivanov, ALROSA’s CEO.
ALROSA plans to use the proceeds for refinancing the existing bank debt and for general corporate purposes. Its only debt to be repaid in 2020 is $494 m of outstanding Eurobonds issued in November 2010.
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