Setl Group Places 5 Billion Rubles’ Worth of Exchange-traded Bonds
2017 november 02
On November 2, Setl Group placed 5 million bonds of series 001P-01 (identification number 4B02-01-36160-R-001P of October 26, 2017) with the overall face value of 5 billion rubles by public offering. The circulation term of the exchange-traded bonds is 5 years. The issue provides for amortization redemption, starting with the 12th coupon. The rate of the quarterly coupon for the entire circulation period of the securities is 9.7% per annum. The funds to be borrowed will be spent, as has been planned, for the development of the targeted program and for loan portfolio optimization. "During the application process, the demand for the bonds exceeded 5 billion rubles, which allowed us to close the book of applications at the rate of 9.7%," says Setl Group’s CEO Yan Izak. “Considering that Setl Group returned to the public borrowing market after a 10-year break (in 2007 the debut bonded loan was placed), this is a good indicator. We view this issue as a successful start to a new stage in the holding company's development as a player in Russia’s borrowing market." REGION BC LLC, JSC VTB Capital, JSC UniCredit Bank and PJSC Sovcombank are the organizers of the placement. The issue was placed within the exchange-traded bonds program with the total volume of 25 billion rubles. Setl Group is one of the most successful and stable construction companies in Russia with high creditworthiness and financial stability indicators. Over the past five years, its revenue has increased 6-fold, the company demonstrating a steady increase in the key operating indicators. By its results of 2016, Setl Group was recognized as the largest developer of Russia in terms of the commissioned volume of housing. In June 2017, the holding company was assigned credit ratings of the S&P international rating agency ("B +", stable outlook) and of the ACRA national rating agency (BBB(RU), stable outlook).
Companies of Setl Group holding