Initially the size of the offering was set at RUB 15 bn and the coupon was expected to be in the range between 7.30% and 7.40% per annum.
However, the deal produced a strong positive reaction from the investor community, and in the first minutes after the book opening the amount of orders exceeded the offered amount by two times and the total orders for the Bonds eventually exceeded RUB 50 bn. As a result the Company was able via the book-building process to increase the total amount of Bonds being offered to RUB 20 bn and set the coupon at the level of 7.20% per annum. The nominal value of a bond is RUB 1,000 and the placement price was 100% of the nominal value.
“7.20% per annum is the lowest rate ever for MegaFon’s public debt instruments and the lowest rate for the Russian corporate bond market since 2011. This deal demonstrated what a strong and attractive investment the Company remains. We are grateful to the investment community for their trust and appreciation of our results expressed not only in the favorable coupon rate on the new Bonds issue, but also in the increase of the size of the offering”, — MegaFon Executive director Gevork Vermishyan commented.
The Bonds were offered under MegaFon’s exchange bonds programme (4-00822-J-001P-02E) which was admitted to trading on 20 April 2016, as previously announced on the Company’s website: http://corp.megafon.com/investors/news/capital_market_releases/20160422-1553.html.
The proceeds from the Bonds will be used to refinance the Company’s existing liabilities and for general corporate purposes.
Gazprombank, Raiffeisenbank and Sberbank CIB were the lead arrangers, with Gazprombank acting as placement agent. Allocation of the Bonds to investors will occur on the Moscow Exchange on or about 19 February 2018.
The company increased its service revenue, OIBDA and net profit in spite of plummeting roaming and retail revenues.