On 2nd of July TransOil placed successfully another US$50m tap of the recent TransOil’s US$400m 5NC3 high yield bond. The tap came on the back of strong secondary market performance of the initial US$400m 8.45% 5-year offering of TransOil placed last month, which saw an orderbook above US$1.5bn.

It was priced at a yield of 7.45% / price of 104.033 with the orderbook reaching an unprecedented 10x oversubscription (ca USD500m) supported by a very high-quality long only accounts & banks from the US, UK and EU.

 

The offering represents another landmark achievement for Trans-Oil and the CEE region this year, as:

 

One of the highest oversubscriptions ever for a high-yield tap - by over 10x

This offering continued to reprice Trans-Oil’s credit risk, with tap yield 1% inside the original yield

It replaces more expensive & inflexible trade finance lines with top line driving long-term debt

Retained important DFIs as investors

 

The record-breaking book oversubscription signals of the continued strong demand towards high-yielding issuers and CEEMEA region despite inflation concerns.