Bank GPB International S.A. is pleased to inform that it has acted as Lead Manager and Lead Bookrunner in an offering of debt securities issued by EVRAZ Group S.A. in an aggregate principal amount of 750m USD 8.25% Notes due 28 January 2021.
This placement allowed EVRAZ Group S.A. to reduce its short-term debt by buying back Eurobonds in total volume approximately 525m USD at par value and prolonging its debt duration by issuing new 5 year term Eurobonds.
The “benchmark” size transaction was announced in difficult market conditions with the initial price thoughts at “low-mid 8%” and final pricing in the announced range. The Lead manager’s well-chosen tactics and strong interest from foreign investors resulted in the order book being oversubscribed, with the deal closing at 8.25% (MS+661).
Final demand from investors exceeded 900m USD (66% of overall demand coming from Continental Europe banks).
It is important to note that the issue of bonds has been placed without a new issue premium to the secondary curve of EVRAZ Eurobonds, being solid evidence of strong interest from foreign investors in high quality Russian risk, even when the markets are highly volatile.