STLC USD550m 4.95% Feb 26

  • By Lewis McLellan
  • 26 Sep 2019
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Rating:Ba2/—/BB+

Amount:$550m

Maturity:18 February 2026

Issue/fixed reoffer price:100 

Coupon:4.95%

Spread at reoffer: 344bp over mid-swaps

Launched:Wednesday, September 24

Payment date:October 2

Joint books: Gazprombank, JP Morgan, Renaissance Capital, VTB Capital

Bookrunners’ comment: 

Guidance began at 5.25%-5.375% on Wednesday morning before being tightened to 5.125% area. The note was printed later in the day at par with a 4.95% coupon.

The book was over $1.3bn, with a surprisingly high proportion of US offshore demand: 20% of allocations.

Before the deal was issued, there was uncertainty as to how investors would respond to an offering from STLC. It was the first time a fully state-owned Russian company had tried to tap the bond markets since the most recent round of US sanctions against the Russian government in early August.

The issuer printed Reg S only and not 144A, just because it was easier and more expedient to do the paperwork for that format. But it was remarkable to see such strong US offshore demand for a Reg S note. It shows there is clearly a bid for this kind of quasi-sovereign, index-eligible name. 

Whenever a state-linked company comes to market, the name has to be assessed, together with the backdrop of the macro and geopolitical situation of the country. There was still a lot of interest in this deal.

The new issue premium was definitely negative. STLC’s 2025 bonds had been trading at around 4.86%, and this new 6.5 year bond was sold with a yield of 4.95%.


Geographical distribution

Europe 36% 

Russia 35%

US offshore 20%

Asia/Middle East 9%


Distribution by investor type

Funds 54%

Banks/private banks 46%

  • By Lewis McLellan
  • 26 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%