Segezha Group Reports on Closing the Book for Ruble Bonds Placement

Segezha Group (part of Sistema JSFC), one of the Russia’s largest vertically integrated forest holdings with a full logging cycle and advanced wood processing, reports on closing the book of investors’ orders for series 001P-01R three-year bonds in the volume of RUB 10 bln.

«In the process of book-building, the book received around 50 applications from all groups of market investors. A broad market demand for bonds allowed us to receive final 7.1% issue coupon, which was a tremendous success for the debut issue of Segezha holding group. The primary approximate coupon rate stood at 7.25-7.50%», - said Rovshan Aliev, Vice President for Finances and Investments of Segezha Group.

Orders were collected on January, 27 from 11:00 to 15:00, Moscow time. Technical placement is scheduled for January, 30. Such companies as VTB Capital, Gazprombank, Sberbank CIB, Sovcombank, BCS Global Markets, Credit Bank of Moscow, MTS Bank, Rosselkhozbank, Ak Bars Bank, Alfa-Bank, IFC Solid were underwriters of this placement.

An exchange-traded bond program without restriction on the period of validity with a maximum amount of nominal values of RUB 100 bln or the equivalent in foreign currency was registered at Moscow Exchange PJSC on December 25, 2019.

Mikhail Shamolin, President and Chairman of the Management Board of Segezha Group, said: “This placement is a debut for us, and we sincerely appreciate investors’ interest in it. It is timely that our company has got an opportunity to raise funds from the Russian debt capital market. This makes it possible for us to improve the quality of our loan portfolio. We expect a positive effect from diversification of our banking sources of funding using market tools and invite investors to share our success.”

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