ICS Holding mulls issuing bonds, IPO - paper

MOSCOW. June 30 (Interfax) - ICS Holding, one of Russia's largest information technology groups, is considering placing a debut issue of bonds on the Moscow Exchange in 2024 and then carrying out an initial public offering, business daily Vedomosti reported on Friday, citing a source close to the company.

This information was confirmed by ICS Holding deputy CEO for finance and treasury Natalia Zabavina, who said the group has set out to reduce its debt burden and replace bank loans with bonds and equity financing. This is because the company has many major projects in the active phase for which it is worth considering additional financing, she said.

The company is considering issuing bonds only in rubles, Zabavina said. Management will determine the timing of the offering by the end of 2023, she said. The proceeds will be used to pay down bank debt, build new production facilities and develop current major projects.

ICS Holding received a credit rating of A- (RU) with a stable outlook from ACRA in June.

ICS Holding, the beneficiary of which is Anton Cherepennikov, is a diversified IT group that includes Yadro, Citadel, Garda and Kryptonite, as well as Bureau 1440, a company working on creating a low-orbit satellite constellation for broadband data transmission with global coverage. ICS companies make telecom equipment, data collection, storage and analysis systems, information security systems, satellite systems, computer hardware, chips and other products.