Page 116 - RusRPTMay21

30bn rubles, the company said in a statement on Monday. “The offering will consist of a primary offering of newly issued shares to raise at least 30bn rubles and an over allotment option of secondary shares. Proceeds from the primary offering will be deployed to accelerate the company’s growth by financing value accretive investments and optimizing leverage,” the statement read. The option, provided by multi-industry holding Sistema, Segezha’s largest shareholder, or by one of Sistema’s 100% subsidiaries, will comprise up to 15% of the offered shares, the company said. It added that Sistema will remain the core owner of Segezha after the IPO. The shares will be listed on the Moscow Exchange on or about the pricing announcement date. J.P. Morgan, UBSZ, and VTB Capital will act as global coordinators and joint bookrunners of the IPO, while Alfa Capital Markets Ltd, Bank GPB International S.A., BofA Securities, and Renaissance Capital will act as joint bookrunners.
Victor Rashennikov, Magnitogorsk Iron and Steel Works (MMK)’s board of directors chairman and main shareholder, is placing a 3% stake in the company on the market via an accelerated bookbuild (ABB) on April 26. Structures linked to Mr. Rashennikov, who has an 84.3% stake in MMK (on a pre-deal basis), are placing 335.2mn shares of MMK on the market. The deal was priced at a 3.2-3.7% discount to the closing price ($12.3/GDR, COB 26 April) and, if executed in full, it should lift MMK’s free float to 18.4%, we estimate. The seller will be subject to a relatively short two-month lockout period. As MMK shares are trading at levels the market hasn’t seen since 2011, the seller should receive over $300mn, we estimate. Mr. Rashennikov’s previous SPO in 2017 was executed at a 3.5% discount to the closing price.
8.4 International ratings
Russia - Rating agency
as of July 1, 2020
last change
Moodys (USD rating)
Baa3 (S)
02/08/19
Fitch (USD rating)
BBB (N)
09/08/19
S&P
BBB- (S)
23/02/18
The international rating agency Moody’s has changed the forecast for the Russian banking sector for next 12-18 months from negative to stable, Vice President – Senior Credit Expert of the Agency Olga Ulyanova says on Wednesday. “The forecast changes from negative to stable,” she says, TASS reports. The forecast revision is based on improved macroeconomic situation in Russia, Ulyanova adds. Moody’s expects Russian GDP will grow by 2.3% in 2021 and by 2.1% in 2022 after the contraction by 3.1% in 2020.
116 RUSSIA Country Report May 2021 www.intellinews.com