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Pyaterochka Parent Completes RUB 5bn Corporate Bond Offering

Published on Nov 14 2019 11:19 AM in Retail tagged: Trending Posts / X5 Retail Group / Pyaterochka / Corporate Bond Offering

Pyaterochka Parent Completes RUB 5bn Corporate Bond Offering

Russian retailer X5 Retail Group has completed a rouble-denominated bond offering worth RUB 5 billion (€71 million) issued by LLC X5 Finance.

The coupon rate on the bonds, which have a 2.5-year put option, was set at 6.65% p.a.

Chief financial officer of X5 Group, Svetlana Demyashkevich, said, "For the third time in a row this year we have managed to achieve the lowest coupon rate among all local market placements since the beginning of 2019.

"This transaction marks an all-time low coupon rate for Х5's public bonds and the lowest coupon among all straight corporate bond offerings in the Russian market since early 2011. We would like to thank our investors and arrangers for their continued support."

Loan Refinancing

The proceeds will be used to cover current expenses, including loan refinancing to improve the current loan portfolio structure, the retailer said.

It was arranged by BCS Global Markets and Sberbank CIB, with Raiffeisenbank acting as the placement agent.

Aleksey Kupriyanov, head of debt capital markets at BCS Global Markets, added, "We are happy with our successful cooperation with X5, which has enabled us to secure the lowest coupon rate in the corporate bond sector for the second year in a row."

© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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