Foreign investors buy up 75% of new Alrosa Eurobonds - VTB Capital
MOSCOW. June 18 (Interfax) - Foreign investors were the main buyers of the new Eurobond issue from Russian diamond miner Alrosa , data from VTB Capital, one of the coordinators of the offering, show.
Alrosa raised $500 million at 3.1% with the placement of seven-year Eurobonds on Wednesday.
The initial yield guidance of 3.375%-3.5% was later lowered to 3.25%, and the final guidance was set in the range of 3.10%-3.15%.
"The order book was oversubscribed by more than three times, peaking at $1.6 billion. The strong demand from investors made it possible to lower the price parameters of the deal three times," the head of debt capital markets at VTB Capital, Andrei Solovyev told Interfax.
"Investors from continental Europe bought 28% of the issue, UK investors accounted for 25% of the bonds, Russian investors accounted for 25%, investors from Asia and the MENA region (Middle East and North Africa) bought 11% of the issue and 11% of the bonds went to investors from the United States," Solovyev said.
He also said that the transaction achieved the lowest coupon for a seven-year issue of dollar-denominated Eurobonds from a Russian corporate issuer in the whole history of such offerings.
