Trans-oil Group succesfully prices new us 400m eurobond issue
Trans-oil Group succesfully prices new us 400m eurobond issue
29.04.2021
On 14th of April, Trans-Oil Group (“the Group”) has successfully returned to the international debt capital markets with a new US$ 400m Eurobond issue due 2026. The transaction is a landmark Eurobond placement in the CEE region in 2021 and the largest offering out of Moldova as the Group continues to be the country’s only issuer post the debut deal in 2019.
The new Eurobond issue generated outstanding demand from international institutional investors with a total order book exceeding US$ 1.5bn during the bookbuilding. Broad investor demand diversification was evidenced by active participation of international asset managers and funds across geographies. Investors from Continental Europe, the US, Switzerland and the UK received 27, 26, 25 and 19 per cent allocation in the final book respectively, with the rest coming out of MENA and Asia. International development financial institutions and long-standing partners of the Group, Black Sea Trade and Development Bank (“BSTDB”) and International Investment Bank (“IIB), have anchored the deal, confirming a total US$ 50m commitment to participate in the new issue at the time of the transaction announcement.
On the back of strong investor demand, the transaction was priced at a yield of 8.45%, representing a significant 365 basis points reduction compared to the debut US$ 300m Eurobond issue in 2019. The proceeds from the issue are to be used to finance an early redemption of the outstanding US$ 300m 12% Notes due 2024 via an any-and-all tender offer and exit consent exercise with additional funds directed for general corporate purposes, including financing of the Group's working capital.
The issue was assigned an expected 'B' rating by Fitch Ratings and a 'B-' rating by S&P Global Ratings.
“The new transaction sets an important milestone in Trans-Oil capital markets history after the debut transaction in 2019. Since that time, the Group has transformed into a larger and more diversified CEE agro-industrial franchise while our revenues and EBITDA have almost doubled. We are grateful that the broad international investor universe has recognized our consistently outstanding performance and strengthened business model. The new issue has attracted robust demand in excess of US$ 1.5bn stemming from our long-standing investors as well as new accounts out of the US, Europe, Asia and MENA, and we achieved substantial yield reduction. With this exceptional investor support we are confidently looking forward and will continue to develop our leading agri-industrial business within the Danube region” - commented Vaja Jhashi, CEO and Founder of Trans-Oil Group
“The overwhelming investor demand for the new Eurobond issue reflects the Group’s resilient business model and proven growth and profitability track record. Trans-Oil has further strengthened its funding profile and proven its access to capital markets contributing to the long-term sustainable development of the Group.” - commented Jim Van Steenkiste, Co-Portfolio Manager, European Principal Group, Oaktree Capital Management, L.P.
