Bank GPB International S.A. is pleased to announce that it has acted as a Joint Lead Manager in an offering of debt securities issued by Russian Railways in an aggregate principal amount of RUB 15bn 8.99% Notes due 03 March 2024.
The “benchmark” size transaction has been announced with the initial price thoughts at “9.2% area” and final pricing far outside this 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 8.99%.
Final demand from investors exceeded RUB 38 bio (17% of the overall demand coming from Continental Europe investors).
It is important to note that the issue of bonds has been placed with minimal new issue premium to the secondary euroruble curve of Russian Railways, being solid evidence of strong interest from global investors in high quality Russian risk, even in when the markets are highly volatile.