Sberbank announces that the bid book for Rosneft’s series 002P-04 exchange-traded bonds worth 50 bln roubles was closed on February 8, 2018. The bonds are due in 10 years, the nominal value of one bond is 1,000 roubles, the bonds were placed at 100% of the nominal value. The bonds feature a 5-year buyback option.
Initially, the guidance for the first coupon was 7.60-7.70% per annum (YTP of 7.74-7.85% per annum). The guidance was reduced twice to reach 7.5-7.55% (YTP of 7.64-7.69% per annum) during the collection of bids.
More than 70 bids from investors were received, the aggregate volume of demand was around 75 bln roubles. The placement volume was increased from 15 bln roubles to 40 bln roubles and eventually to 50 bln roubles.
As a result of book building, the first coupon was set at 7.50% per annum (YTP 7.64% per annum).
Eduard Dzhabarov, Managing Director of the Debt Capital Markets Division, said: “This transaction is absolutely unique for the Russian bond market throughout its entire history. The transaction was a purely market one, bids from 70 investors were collected, including retailers, banks, management companies, and pension funds. Despite negative market developments, the weakening of the rouble on the FX market, a collapse of US stock indices, and a corrective trend on the hydrocarbon market, Rosneft managed to reach two goals at once – to attract a record amount of financing and set a low coupon rate. The success was predetermined by several factors: the optimal maturity, which was of interest to a wide range of investors (from banks to management companies), lack of high-quality offers since the beginning of the year, a low inflation rate that triggered expectation of even lower rates, a high amount of available liquidity in the financial system, lower geopolitical risks related to Russian government debt, and finally a high level of financial discipline and financial management of Rosneft.”
The technical placement will be held on Moscow Exchange on February 15, 2018. Gazprombank, Sberbank CIB1, and VTB Capital will act as placement organisers.
Sberbank is Russia’s largest bank and a leading global financial institution. Sberbank holds almost one third of aggregate Russian banking sector assets, it is the key lender to the national economy and the biggest deposit taker in Russia. The Central Bank of the Russian Federation is the founder and principal shareholder of Sberbank owning 50% of the Bank's authorized capital plus one voting share, with the remaining 50% held by domestic and international investors. Sberbank has more than 145 million customers in 21 countries. Sberbank has the largest distribution network in Russia with almost 15,000 branches, and its international operations include UK, US, CIS, Central and Eastern Europe, India, China, Turkey and other countries.
Sberbank CIB is the corporate and investment banking business of Sberbank. Its key areas of activity are corporate finance (including trade finance), the documentary business2, investment banking services, trade operations with securities, and private equity. Sberbank’s corporate and investment banking business provides integrated financial solutions and investment advisory services to its clients, which include major corporations, financial institutions, sovereign states and federal and sub-federal government bodies and organisations.