Trans-Oil group succesfully prices new us 50m tap issue of the recent us 450m 5nc3 eurobond

Trans-Oil group succesfully prices new us 50m tap issue of the recent us 450m 5nc3 eurobond

On 10th September 2021, Trans-Oil Group (‘the Group”) successfully priced US$50m tap issuance of the original US$450m Eurobond due 2026. The transaction brings the outstanding Eurobond to a total benchmark size of US$500m following the US$400m new Eurobond issue in April 2021 and first US$50m tap issue in June 2021, supporting the investor demand and enhancing liquidity.

The new tap issuance was launched on the back of strong secondary market trading and generated outstanding investor demand with a total order book reaching US$ 300m during the bookbuilding reflecting sixfold oversubscription. The high quality demand came from the institutional investors from the US (offshore), UK and Continental Europe representing approximately 50, 25 and 25 per cent of the book. As the result, the tap was priced at price of 104.125 reflecting final yield of 7.33% (YTW) – well inside the original issue yield.

The transaction further improves the Group’s capital structure and maturity profile replacing inflexible short-term trade finance lines with top-line driving long-term debt. S&P and Fitch reaffirmed credit ratings of the Group and the Eurobond following the proposed tap issue.

Citi, ING and Renaissance Capital acted as Joint Lead Managers and Joint Bookrunners in connection of the tap issuance.

“The exceptional international investor demand we have seen for our new tap issue is an additional testimony of our consistently outstanding performance, strengthening business model and solid credit profile. We are grateful for the support of our long-standing investors and welcome new accounts, which will altogether benefit from solid liquidity of $500m benchmark total issue size. With the new issue we continue to improve our capital structure and extend the debt maturity profile contributing to sustainable growth and development of leading regional agri-industrial franchise” - commented Vaja Jhashi, CEO and Founder of Trans-Oil Group.

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