The initial coupon rate benchmark for the bond issuance was set at a maximum of 10.40% per annum, corresponding to a yield to maturity of 10.67% per annum. Additionally, the indicative volume of the issue was set at a minimum of RUB 5 billion. However, during the formation of the order book, the demand exceeded the initial offer by more than three times, allowing the company to make adjustments.
As a result, the benchmark coupon rate was reduced multiple times and finally fixed at 10.05% per annum, with a corresponding yield to maturity of 10.30% per annum. Furthermore, the volume of the issue was increased from the initial 5 billion rubles to 10 billion rubles.
This transaction signifies JSC “YuGK’s” commitment to lengthening its debt portfolio and diversifying its investor base. The company is pleased to see new names in the order book, reflecting the growing interest in its bonds. The funds increased from the placement will be utilized to refinance the company’s existing debt, as stated by Artem Kletskin, the Chief Financial Officer of JSC Yuzhuralzoloto Group of Companies.
It is worth noting that Yuzhuralzoloto, owned by Konstantin Strukov, has been assigned credit ratings of ruAA- by Expert RA and AA-(RU) by ACRA, indicating its strong creditworthiness. This solid credit rating further enhances the company’s reputation and attractiveness to potential investors.
Yury Novikov, the Head of the Investment Banking Division of Rosselkhozbank, commented on the significance of the debut placement of JSC “YuGK” bonds denominated in Russian rubles. This milestone event has attracted increased interest from investors, demonstrating their confidence in the gold mining sector bonds. The successful placement allowed the company to secure financing on favorable terms, ensuring its continued growth and expansion.
With these achievements, JSC “YuGK” is poised to strengthen its position in the market and successfully execute its strategic objectives. The company remains committed to delivering value to its stakeholders and driving sustainable growth in the gold mining industry.
In conclusion, the recent bond placement initiative by JSC “YuGK” underscores the company’s robust financial position and strategic foresight. The overwhelming response from investors and the successful placement of bonds worth billions of rubles reinforces the company’s credibility and attractiveness in the market.
This milestone not only aids in refinancing existing debts but also prompts continued growth and expansion in the gold mining sector. It symbolizes a promising future for JSC “YuGK,” its stakeholders, and the gold mining industry at large.