X5 Retail Group N.V. RUR 9 Billion Bond Issue
10 Jul 2007
Moscow, July 10, 2007 – Today, X5 Retail Group, the largest Russian retail chain, successfully placed its first RUR 9 billion (US $350 million) bond at MICEX.
The bond was 1.6 times over-subscribed, with investor demand representing RUR14.5 billion. The first coupon rate was set by auction at placement at 7.60% p.a. and accordingly the yield to a 3-year put-option amounts to 7.74% p.a.
ZAO Raiffeisenbank Austria and Bank VTB were mandated Lead Managers of the Issue.
The Lead Co-arranger is ABN AMRO Bank. Co-arrangers are Citibank, Societe Generale Vostok, International Moscow Bank and Bank of Moscow.
The Underwriters of the issue are Svyaz-Bank, WestLB Vostok, ING Bank (Eurasia), NOVIKOM-Bank. Co-underwriters are Commerzbank (Eurasija), Deutsche Bank, Dresdner Bank, Credit Suisse, Rosbank, Khanty-Masniisky Bank, HSCB, European Trust Bank and Uralsib.
The 7-year bond pays semiannual coupons. Coupons 1 to 6 are equal and amount to 7.60% p.a., the rest to be defined by the issuer later. The issue has an embedded 3 year put option at par.
The funds raised by the bonds will be used for refinancing of the existing bond issues of the Group (Pyaterochka First and Second bond issues and Perekrestok First bond issue).
Dmitriy Milshtein, Group Head of Treasury commented:
"We are very pleased with the terms of the issue and the high level of demand for our bonds, which demonstrates the confidence of the investment community in our company. The success of the issue clearly shows the support of the market for X5's investment strategy."
Vitaliy Podolskiy, the Group CFO, said:
"This issue, together with the restructuring of the Group’s previous bond issues allows us to significantly improve our borrowing structure and reduce our debt servicing costs"
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