The new issue of IMH eurobonds was placed with the lowest ever coupon for B-rated corporates from CIS
Industrial Metallurgical Holding (IMH), one of the leading global producers of merchant pig iron and one of the biggest merchant coke producers in Russia announces successful closing of the transaction on placement of a new Eurobonds issue (ticker IMHRUS 5.9 09/23/25 REGS)
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The new issue of five-year Eurobonds was announced on September 08, 2020, and the book was closed on September 17, 2020. The issue volume amounted to US$ 350 million, with a coupon rate at 5.9% per annum, which is 1.6 pp. below the level of IMHRUS 2022 Eurobonds issued in 2017. New Eurobonds were placed in the Reg S / 144A format. Citigroup Global Markets Limited and Renaissance Securities became the global coordinators and bookrunners of the issue. Alfa-Bank, Gazprombank, Sberbank and VTB Capital acted as joint bookrunners with the participation of Sova Capital Limited as a co-manager.
The new issue was rated B by Fitch and B2 by Moody’s.
Proceeds from the new issue will be used to refinance IMHRUS 2022 Eurobonds and for general corporate needs.
Sergey Frolov, IMH Vice President for Strategy and Communications commented on the event: “We thank our investors for their support and trust. IMH has been present on the global capital market since 2011, when the debut issue of Eurobonds was placed at the rate of 7.75% per annum. The new placement shows significant growth of the company's reputation as a reliable borrower. The set coupon of 5.9% for this issue is a record low among issuers from the CIS with a B/B2 rating. We have attracted a very high-quality investor base, including major international investment funds and banks. 42% of funds came from Russian investors, 58% - from Europe, the UK and the USA. The book was closed with almost two times oversubscription”.
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