Maturity: 30 July 2026
Issue/fixed reoffer price: 100
Spread at reoffer:mid-swaps plus 185bp
Launched:Tuesday, July 23
Payment date:July 30
Joint books: Citi, HSBC, ICBC, Société Générale, UniCredit
We wanted to add a second point to the yield curve. The feedback from investors was very strong for a seven year, and that helped the deal build momentum.
We don’t have major financing needs but, if the conditions are right, we might consider refinancing some of our older debt.
This was the second international bond from EPIF. It already had a 2024 bond outstanding.
We got a very successful transaction done and it was multiple times subscribed — the book peaked with €2.3bn of orders. The new transaction allowed the company to extend its investor community to include more European dedicated investment grade accounts.
We were able to finish with very attractive pricing — 1.698% — which is flat to the curve extrapolated from the borrower’s existing point and the curve of triple-B corporates.
It’s the best pricing ever on a yield basis from an eastern European corporate at this maturity.
The feedback during the marketing was very encouraging for a seven year. It was a chance to extend the curve. The issuer didn’t need to issue a larger size and hence decided to focus on a single tranche. This way, there’s a solid anchor point extending the curve with good liquidity.
The company had been getting the transaction ready and wanted to move ahead before the summer. The market backdrop was strong. We don’t expect the European Central Bank to disrupt things majorly but we wanted to get ahead of that because next week, the summer lull will begin and there will be less activity in the primary market.
We got a good mix of investors — both European investment grade dedicated accounts and central and eastern European accounts.
EPIF is committed to remaining a regular issuer. It’s been very proactive in using various instruments this year — loans, Schuldschein, private placements, Eurobonds. It has a policy of holding approximately 70% of its group debt at parent level, which has translated into planned refinancing of some of the opco debt at parent level in H2 2019.
Rest of Europe 8%
Rest of world 3%
Distribution by investor type
Asset managers 79%
Banks/private banks 12%
Insurance/pension funds 7%
Hedge funds/other 2%