Demand for Eurochem bonds twice exceeds supply at about 30 bln rubles
MOSCOW. April 8 (Interfax) - The total demand for the bonds of agrichemicals firm Eurochem for 15 billion rubles, which are being placed on markets as part of a program, amounted to about 30 billion rubles, a source on banking circles told Interfax.
"Demand at the cut-off price was 25 billion rubles," the source said.
Book building for the bonds took place on April 7. The initial yield guidance of the first coupon was set at 10.6%-10.85% per annum. During the collection of bids the guidance was narrowed to 10.5%-10.75% per annum and then twice narrowed and it amounted to 10.5%-10.6% per annum.
The yield of the first coupon was set at 10.6% per annum, the rates of the second to sixth coupons are equal to that of the first coupon. An offer is not envisaged.
The three-year bonds have six-month coupons.
The technical bond placement is planned for April 19.
The organizers are Rosbank and Sberbank CIB.
For the bonds a guarantee in the form of an offer is expected from EuroChem Group AG.