TransOil scores with second attempt to open up Moldovan market

TransOil scores with second attempt to open up Moldovan market

03.04.2019

TransOil, a Moldovan agricultural exporter, on Monday launched the first ever international bond from the country, completing the deal successfully.

Citi, Renaissance Capital and UBS were bookrunners for the $300m five year benchmark, while VTB Capital joined the syndicate as joint lead manager. The leads offered price guidance of 12% area, before printing the deal in the line with that at 12%.

The trade was “comfortably oversubscribed”, according to Andrey Solovyev, global head of DCM at VTB Capital. However, the final book size has not yet been released.

Dmitry Gladkov, acting head of investment banking at Renaissance Capital, said: “The book was well covered by indications of interest when we finished the road show [on Friday, March 29].”

Since the deal was a debut both from the issuer and from Moldova, there was an element of price discovery required. “There hasn’t been much corporate supply from the region apart from similar Russian and Georgian single B-rated peers in the region, so that was a useful guide,” said Gladkov.

TransOil attempted to make its bond market debut in February 2018, but was unsuccessful because of market conditions. “The market went completely quiet when the issuer tried to come to the market last February,” said Gladkov. “The concerns around the US interest rate peaked then and wiped out upcoming issuances in the dollar space. “However, the company used its time well and came back with a stronger offering to the market. We had the 144A tranche as well as the Reg S, and a new rating from Fitch, as well as managing to secure an anchor investment from the Black Sea Trade and Development Bank, which helped to validate the transaction.”

By Lewis McLellan 

2 April 2019