The Eurobonds issue of the Russian shipowner Sovcomflot was awarded as the “Deal of the Year” in the category Institutional Debt by the authoritative international magazine Marine Money. Sovcomflot becomes the winner of the highest awards of Marine Money for the seventh year in a row. In June 2016, the GFR Group successfully completed the issue of 7-year Eurobonds in the amount of 750 million USD. The funds were raised to repurchase the company’s already outstanding Eurobonds with maturity in 2017 and to refinance other debts.
The new issue of Sovcomflot bonds was in high demand from investors: the volume of applications received exceeded the output by more than two times. This allowed to significantly reduce the rate of return of securities – to the level of 5.375% per annum, which corresponds to the coupon of the debut issue of Eurobonds of Sovcomflot in 2010. The tender for the redemption of these debut bonds also aroused considerable interest in the financial community, as it was attended by 83% of the owners of securities, a record level of participation of creditors in such tenders for Russia.
The organizers of the placement were Citigroup, J.P. Morgan, Sberbank CIB, VTB Capital and ING.
Three major world credit agencies (Fitch, Moody’s, S&P) evaluated the deal as having a positive effect on the credit profile of the GFR Group.
The publication of Marine Money estimated the placement of the GFR Eurobonds as a success by several parameters at once.
“The GFR Group has successfully returned to the international market after a six-year absence and has established a new benchmark of liquidity in the Eurobond market”, says the publication.
“In total, during 2016, the GFR Group successfully attracted debt financing of 1.26 billion USD. This allowed us to significantly optimize the structure of debt repayment and ensure the proper financing of the company’s investment projects”, said CFO of Sovcomflot, Nikolai Kolesnikov.
In 2016, Sovcomflot won two Marine Money awards: the financial director of Sovcomflot Nikolai Kolesnikov became the winner in the nomination “Dealmaker of the Year”, and the credit agreement of Sovcomflot with Sberbank CIB was recognized as “Deal of the Year”.