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SUEK (“SUEK”, “Group” or “the Company”) announces the placement of its first-ever international public debt offering, securing a $500 million Eurobond transaction, maturing in September 2026, with a coupon rate of 3.375% per annum.
Strong oversubscription was achieved (over three times), driven by the participation of more than 100 investors across Russia, Continental Europe, the United Kingdom, the United States, Middle East and Asia.
“The success of the placement reflects strong market fundamentals and investor confidence in our robust and diversified business model,” said Stepan Solzhenitsyn, SUEK Chief Executive Officer. “The considerable market momentum and strong investor interest actually saw the book peak at over $1.8 billion, giving us leverage to tighten pricing by 50bps from the wide end of the original price guidance and pin lending at 3.375%,” he added.
Andrei Vanyushin, SUEK’s Chief Financial Officer, noted, “The placement created a new market benchmark for BB-rated names, and became the lowest yield ever for a Eurobond offering by a sub-investment grade Russian corporate issuer.”
“This transaction allows us to further diversify our financing base, increase the share of fixed-income and public debt instruments in our portfolio,” he said. “The proceeds will go towards refinancing of existing liabilities and extending the maturity profile of the company’s debt portfolio”, Vanyushin added.
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The information on the pages that follow may contain forward-looking statements. Any statement other than a statement of historical fact is a forward-looking statement. Actual results may differ materially from those expressed or implied by any forward-looking statement. JSC «SUEK» or its subsidiaries do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any forward-looking statement, which speaks only as of the date of its issuance.
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