Sovcomflot increases yuan bond offering to CNY 2.6 bln

MOSCOW. March 23 (Interfax) - Sovcomflot has increased its offering of three-year bonds series 001P-01 denominated in Chinese yuan from at least CNY 2 billion to CNY 2.6 billion, a financial market source told Interfax.

Final yield guidance for the first coupon of the bonds was set at 4.95% per annum.

Book building for the bonds took place between 11:00 a.m. and 3:00 p.m. on March 23. The bonds have semi-annual coupons. Initial yield guidance was not more than 5.25%.

Gazprombank and BC Region are running the offering.

The bonds should start trading on March 28. The minimum bid must be divisible by the equivalent of 1,000 yuan in rubles at the Central Bank of Russia's official exchange rate on the date of placement, but at least 1.4 million rubles.

Settlements will be carried out, coupons paid and the bonds redeemed in yuan; at the discretion of the issuer and at the request of investors, non-cash payments in rubles are possible at the Bank of Russia's official exchange rate.

The issue is being placed as part of the company's 001P series bond program at 100 billion rubles or its equivalent in foreign currency. The company had previously reported that the approved program is multi-currency, and that the debut placement under the program is planned in 2023, taking into account market conditions.

The issuer has not previously entered the debt market with ruble bond issues. In October and December 2022, the company placed local bonds to replace two outstanding Eurobond issues maturing in 2023 and 2028. The company announced on Monday plans additionally to place local bonds maturing in 2028 to exchange outstanding Eurobonds.