Demand for Polyus Gold Eurobonds topped $1.5 bln with more than 140 investors bidding - VTB Capital
MOSCOW. Oct 20 (Interfax) - The bid book for Eurobonds placed by Polyus Gold International Limited was more than three times oversubscribed and exceeded $1.5 billion, the head of debt capital markets at VTB Capital, Andrei Solovyev told Interfax.
"Interest in the deal was very high - there were more than 140 accounts in the book. The strong demand meant pricing could be fairly tight - the final yield level was very important for the company and the bonds were placed at a fairly comfortable level for it," he said.
Jersey-registered Polyus Gold International Limited, the parent company of No. 1 Russian gold miner PJSC Polyus , placed $500 million in bonds maturing in March 2022 at 4.7% pa on Wednesday.
The placement organizers were J.P. Morgan, Renaissance Capital , Sberbank CIB and VTB Capital . The Eurobond road show took place on October 13-18 in Moscow, London, New York, Boston, Zurich and Geneva.
Initial yield guidance for the notes was about 5%, but then lowered to 4.75% (+/-5 bps) and ultimately to 4.7%.
PJSC Polyus saw its net debt decline by $228 million or nearly 7% in the third quarter to $3.241 billion as of the end of September. Polyus Gold International Limited's net debt also declined 7% in the period, to $2.941 billion.
Polyus is the largest Russian gold mining company. It mines hardrock and alluvial deposits in Krasnoyarsk territory, the Irkutsk, Magadan and Amur regions, and also in Yakutia.
Polyus' main beneficiaries are the Suleyman Kerimov Foundation, founded by Suleyman Kerimov, and Said Kerimov.
