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16 I Companies & Markets bne August 2020
In just the last two days both Ukraine and Uzbekistan have also announced they will issue new Eurobonds.
The coupon on Sibur’s new bond will be paid twice a year
and the proceeds will be used to optimise the Company’s loan portfolio and for general corporate purposes, the company said.
The bond was organised by Bank GPB International
S.A., Citigroup Global Markets Limited, Goldman Sachs International, J.P. Morgan Securities plc and VTB Capital plc acting as the leading coordinators and bookrunners.
Demand was strong and the order book topped $1bn, which was taken up by 94 investors from around the world. The issue was rated Baa3 by Moody’s and BBB- by Fitch.
Alexander Petrov, member of the Management Board and Managing Director for Economics and Finance at Sibur, said: “The resilience of Sibur’s business and its growth potential are highly valued by investors, which is confirmed by the reaffirmation of the company’s investment-grade credit ratings from the three leading agencies. The record-low coupon rate at which the eurobonds were offered testifies to investors’ confidence in Sibur as a high-quality borrower."
Turkey’s Akbank sells $500mn of 5-year eurobonds at 6.80%
Akin Nazli in Belgrade
Akbank, one of Turkey’s largest private lenders, has sold $500mn worth of USD-denominated senior unsecured eurobonds abroad. They are due February 2026 at
a fixed coupon rate of 6.80%, the lender said on June 30 in
a stock exchange filing.
Turkey’s five-year credit default swaps (CDS), treated as a volatile trading instrument by the markets, stood just below 500bp as of July 1.
Citigroup Global Markets Limited (Citi), Emirates NBD Capital Limited (Emirates NBD), ICBC Standard Bank Plc (ICBC), Merrill Lynch International (BofA), SMBC Nikko Capital Markets Limited (SMBC Nikko) and Standard Chartered Bank (SCB) acted as book-builders in the issuance, to be completed on July 8.
The deal on Akbank’s e RegS/144A benchmark papers comes amid expectations that emerging market investors have
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Sibur is the leader of the Russian petrochemical industry and one of the largest companies globally in this sector, with more than 23,000 employees. The company’s unique vertically integrated business model allows it to create highly competitive products that are used in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide.
The company has also implemented an environmental, social and governance (ESG) strategy and helps to reduce its CO2 emissions as it fixes associated petroleum gas (APG) in plastic products that used to be flamed off.
“In 2020, Sibur processed 22.6bn cubic metres of APG, thus cutting greenhouse emissions by 72mn tonnes, which is equivalent to the annual CO2 footprint of a middle-sized European country,” the company said. “In 2020, Sibur reported revenue of $8.2bn and EBITDA of $2.6bn. Over the past 10 years, Sibur has implemented a number of large-scale investment projects worth more than RUB1 trillion ($14.1bn). Each year, the Company spends no less than 70% of its EBITDA to finance its investment programme, while maintaining
a balanced debt burden.”
finally opened up for corporate and financial institution issuance, Global Capital noted.
In December, Akbank, controlled by Turkish conglomerate Sabanci Holding, received approval from the Capital Markets Board (SPK) to sell up to $2bn worth of papers abroad.
In January, it redeemed $500mn of 5-year eurobonds (US00972BAA70), which paid a 4% coupon.
The lender has $500mn of eurobonds due October 2022 (USM0375YAK49), which pay a 5% coupon.
It also has $500mn worth of 10-year eurobonds due October 2025 (US00971YAF79), which pay a 5.125% coupon.
Moody’s Investors Service sees Akbank at B3/Negative, six notches below investment grade, while Fitch Ratings has it at B+/Negative, four notches below investment grade.