22 Sep 2017 14:03

Demand from Asian investors for RusHydro Eurobonds due to projects in Far East - company

MOSCOW. Sept 22 (Interfax) - Demand for RusHydro Eurobonds in rubles from Asian investors is due the company's development of electricity in the Far East, a press release by the company said after it placed new Eurobonds.

RusHydro, said that the bid book was oversubscribed by two-fold with over 75% of bids coming from international investors in Europe, the United States, the United Kingdom and Asia. "RusHydro's focus on developing electricity in the Far East and ensuring economic development in the region attracted a record share of demand from institutional investors from Singapore, China, Hong Kong and Taiwan, exceeding 40% of the issue," the company said.

"The successful return to international capital markets is a confirmation of the high level of confidence in RusHydro as an efficient and reliable state energy company. We intend to continue to strengthen and develop RusHydro's operations in Russia's Far East, among others, and we have seen high interest toward the deal exhibited by international investors from the Asia Pacific Region and other regions around the world," RusHydro CEO Nikolai Shulginov said, commenting on the placement.

Foreign investors were the primary buyers of the new issue of the ruble-denominated Eurobonds, buying up over 70% of the placement. Andrei Solovyev, the head of debt capital markets at VTB Capital which was one of the organizers of the placement, told Interfax that investors from the United Kingdom bought 30% of the issue, 26% was bought by investors from Asia, 23% from Russia, 13% from Europe and 8% from the United States.

RusHydro placed five-year Eurobonds for 20 billion rubles at 8.125% on Thursday, tapping international debt markets for the first time in seven years.