21 Dec 2017 14:32

Magnit approves exchange-traded bond program for up to 50 bln rubles

MOSCOW. Dec 21 (Interfax) - Magnit's board of directors approved an exchange-traded bond program for up to 50 billion rubles at a meeting on December 20, the company said.

The duration of the series 003P bonds program is unlimited and bonds will mature in five years.

This is Magnit's third bond program. The first was registered in October 2015 and the second in July 2016. The duration of all these bond programs is unlimited, and all are worth up to 50 billion rubles and in circulation for five years.

A total of four bond issues have been placed under the first program for 10 billion rubles each. No bonds were placed under the second program.

The last time Magnit tapped the bond market was in July 2016 when the company placed 001R-04 series bonds for 1.5 years. The coupon rate was set at 10% per annum for the entire circulation period.

The company has three exchange-traded bonds in circulation for 30 billion rubles.

Magnit is Russia's biggest retailer by store number. At the end of June, the company operated 11,114 convenience stores, 240 hypermarkets, 190 Magnit family stores and 3,300 drogerie stores located in over 2,500 localities in Russia. Around two thirds of the company's stores operate in cities with populations under 500,000 people. Magnit's net debt totaled 138.950 billion rubles at the start of H2, with net debt/EBITDA at 1.3x.