Sibur USD500m 3.45% Sep 24

  • By Lewis McLellan
  • 19 Sep 2019
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Rating: Baa3/BBB-/BBB

Amount:$500m Reg S/144A

Maturity:23 September 2024

Issue/fixed reoffer price:100

Profit rate:3.45%

Spread at reoffer:mid-swaps plus 182bp, US Treasury 1.25% August 2024 plus 175.3bp

Launched:Tuesday, September 16

Payment date:September 23

Joint books: Gazprombank, Goldman Sachs, JP Morgan, Sberbank

Borrower’s comment: 

We decided not to postpone the deal and to go ahead with the bookbuilding process. The result in the end shows that decision was justified.

We now have an investment grade rating from all agencies, which improves our cost of funds, and the overall environment, US Treasuries in particular, meant that a good cost of funds was available across the whole market. Russian performance in particular has been impressive.

There were several factors behind our decision to come back to the bond market. We don’t have a real need for funding, but it was an excellent opportunity to improve our credit portfolio. 

Also, we are able to use the funds for payments for contracts for some projects that have been completed. We’re committed to remaining active in capital markets.

A higher oil price is actually slightly beneficial for us, although it does raise costs for our chemicals business. But really, we don’t expect it to have a long-term effect and I don’t think it really affected investors’ perceptions of how likely we are to pay back the bond.

Bookrunners’ comment: 

We’re very pleased with the result. We saw a new issue premium of about 5bp. Severstal’s new bond was trading at 3.25% and it’s better rated. 

Some of Sibur’s older bonds are quite squeezed because they bought back $200m, so the secondary curve isn’t a great guide.

Geographical distribution

Russia 41%

Continental Europe 26%

Asia/Middle East/Africa 15%

UK 11%

US 7%

  • By Lewis McLellan
  • 19 Sep 2019

Bookrunners of International Emerging Market DCM

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 16.96 84 10.49%
2 Citi 16.47 74 10.18%
3 HSBC 13.06 94 8.08%
4 Standard Chartered Bank 8.51 60 5.26%
5 BNP Paribas 8.28 55 5.12%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 Santander 4.35 19 13.01%
2 JPMorgan 3.89 18 11.62%
3 Citi 3.70 18 11.05%
4 Morgan Stanley 2.60 9 7.78%
5 BNP Paribas 2.42 9 7.23%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 6.94 29 14.41%
2 Citi 5.72 20 11.86%
3 HSBC 5.08 24 10.54%
4 Standard Chartered Bank 4.14 19 8.60%
5 Goldman Sachs 2.95 6 6.12%

EMEA M&A Revenue

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 0.20 50 10.55%
2 Goldman Sachs 0.16 37 8.77%
3 Morgan Stanley 0.14 46 7.64%
4 Bank of America Merrill Lynch 0.11 33 6.18%
5 Citi 0.10 35 5.16%

Bookrunners of Central and Eastern Europe: Loans

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 ING 1.57 13 8.92%
2 Credit Agricole CIB 1.53 7 8.68%
3 MUFG 1.24 5 7.08%
4 Sumitomo Mitsui Financial Group 1.16 8 6.61%
5 UniCredit 1.04 10 5.91%

Bookrunners of India DCM

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 HSBC 1.12 9 17.54%
2 JPMorgan 0.92 8 14.49%
3 Standard Chartered Bank 0.88 8 13.92%
4 Barclays 0.82 7 12.82%
5 MUFG 0.72 6 11.36%