Swiss-based fertilizer producer Eurochem has returned to the international debt markets with a new $700 million Eurobond issue, the company said in Tuesday, according to World Fertilizer.
During an intensive roadshow in the U.S. and Europe, the company was met with strong interest from high-quality international investors, Eurochem said, adding that the final book was twice oversubscribed.
Initial price guidance was announced in the 5.875% area for a new five-year Eurobond offering, but the order book response was such that the company revised price guidance twice, and priced the offering at 5.50%.
The transaction is the largest non-investment-grade issue from Russia since June 2017, and the very first Eurobond offering since February 2018.
“We’re proud to have achieved unprecedented results by pricing the largest Eurobond issuance in international public debt capital markets for the Group, and with our longest tenor, since 2012,” said Eurochem’s acting CEO and Chief Financial Officer, Kuzma Marchuk.
“We strongly believe that our landmark transaction will pave the way for further private corporate issuances from Russian entities in the Eurobond market,” he added.
The liability management transaction, which involved tendering two outstanding bonds with maturities in 2020 and 2021, will help improve the Group’s debt redemption schedule, Eurochem said, adding that the company achieved one of the highest participation rates to date among similar issuers and the total acceptance amount was increased from $500 million to $747.8 million.
Citigroup and JP Morgan acted as joint global coordinators on the bond.
