DETSKY MIR ANNOUNCES BOOK CLOSING OF EXCHANGE-TRADED BONDS OF RUB 5 BN WITH THE COUPON RATE OF 8.90%
Moscow, 12 April 2019 – Detsky Mir PJSC (“Detsky Mir” or “the Company”, MOEX: DSKY), Russia’s largest specialized children’s goods retailer and a Sistema Group company (LSE: SSA, MOEX: AFKS) announces the successful book closing of its series BО-07 exchange-traded bond issue with a nominal value of RUB 5 bn and a coupon rate set at 8.90% p.a.
TRANSACTION DETAILS
- On April 11, 2019 PJSC Detsky Mir opened order book for the RUB 5 bn Series BO-07 bond issue with the initial price guidance of 9.00-9.20% p.a.
- During the bookbuilding investor demand was more than twice the bond issue size that allowed the issuer to revise the marketing range from the initial level down to 8.80-8.90% p.a.
- More than 30 orders for the total amount of over RUB 10 bn have been received from a wide range of investors.
- The final coupon rate was set at 8.90% p.a., which corresponded to the spread of 128 bps to govt curve – by 28 bps lower than the spread to govt curve in the placement of 2017 (Series BO-04 bond issue).
- The settlement of the bond is scheduled on April 15, 2019 at PJSC Moscow Exchange. Gazprombank (JSC), JSC Raiffeisenbank and JSC ALFA-BANK acted as Lead Arrangers of the transaction. Gazprombank (JSC) will act the the placement agent.
Anna Garmanova, PJSC Detsky Mir Chief Financial Officer, pointed out:
“We are focused on improving the business efficiency and try to use all opportunities for that, including optimization of the debt portfolio structure and reduction of the cost of debt. Strong investor demand for our bond once again confirms high evaluation of the growth potential and credit quality of the Company. Proceeds from the placement will be used for refinancing of the current credit portfolio aiming at its further diversification and cost reduction.”
For additional information:
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Надежда Киселева По вопросам связей с общественностью (PR) Тел.: +7 (495) 781-08-08, доб. 2041 Моб.: +7 (985) 992-78-57 nkiseleva@detmir.ru |
Сергей Левицкий По вопросам связей с инвесторами (IR) Тел.:+ 7 (495) 781-08-08, доб. 2315 slevitskiy@detmir.ru |
Detsky Mir Group (MOEX: DSKY) is a multi-format retailer and Russia’s largest specialized children’s goods retailer. The Group comprises the Detsky Mir retail chain, ELC (Early Learning Centre in Russia) and the ABC retail chains, as well as the Zoozavr pet supplies retail chain. The company operates a network of 674 Detsky Mir stores located in 254 cities in Russia, Kazakhstan and Belarus, as well as 56 ELC and 12 ABC stores as of 31 March 2019. The Zoozavr retail chain comprises six stores. Total selling space was approximately 769,000 square meters.
In accordance with the audited Financial Statements under IFRS, Group revenue amounted to RUB 110.9 bn for FY 2018, adjusted EBITDA totaled RUB 12.7 bn and adjusted profit amounted to RUB 7.2 bn.
Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: PJSC Sistema[1] – 52.10%, Russia-China Investment Fund (RCIF) [2] – 14.03%, other shareholders owning less than 5% of the shares – 33.87%.
Lear more at www.detmir.ru, corp.detmir.ru, elc-russia.ru.
(13) Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, children’s goods retail, paper and packaging, healthcare services, agriculture, high technology, banking, real estate, pharmaceuticals and hospitality.
(14) RCIF, an equity fund established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC), holds its stake in PJSC Detsky Mir through its funds: FLOETTE HOLDINGS LIMITED and EXARZO HOLDINGS LIMITED.