November 15, 2018. Moscow,
Russia. PJSC RusHydro (ticker symbol: MOEX, LSE:
HYDR; OTCQX: RSHYY) announces closing the bid book on
RusHydro is the first Russian corporate to issue
Eurobond denominated in renminbi (dim sum bonds).
The issue of 3-year dim sum bonds in the amount of
CNH 1.5 bn is the largest public financing transaction denominated in
CNH by a Russian borrower. The transaction reflects implementation of
agreements in the field of economic cooperation between Russia and
China, including financing in national currencies.
Total demand reached 2.5 bn renminbi, with the
share of Asia-based investors representing more than 82% of the final
bid book. The bond is placed in accordance with RegS. The final
coupon rate was set at 6.125%. RusHydro’s liabilities will be fixed
in rubles on conditions comparable to conditions, prevailing on
ruble-denominated debt market, enabling the Company to mitigate forex
Nikolay Shulginov, Chairman of the Management
Board – General Director: “Successful debut placement of
renminbi-denominated Eurobond demonstrated high level of trust from
international investors to the Company as a reliable borrower. In
particular, investors from Asia-Pacific region have shown strong
interest in the issue. For the Company raising 1.5 bn renminbi
via Eurobond issue opens a new and very promising source of
financing, especially important in the light of current geopolitical
conditions and our strategic plans for developing energy sector of
the Russian Far East”.
VTB Capital, JP Morgan and Gazprombank acted as
the issue organizers.
Earlier placement of debt by RusHydro in September
2017 and February 2018 also has been greeted by high interest from
investors as the share of European, US and British investors
represented 3/4 of the September issue volume. RusHydro’s focus on
developing the energy sector of the Russian Far East attracted a
record-high number of investors from China, Hong Kong and Taiwan.
Their share represented over 40% of the volume. The February
placement was also quite successful, as the demand was almost four
times the necessary threshold volume issue of RUB 20 bn. The
final bid book was allocated between Asian, European and Russian
investors with international investors representing 2/3 of demand.