PIK-Corporation LLC (100% subsidiary of PIK Group of Companies) has set the coupon rate for the 1st coupon of 001P-03 series bonds with a maturity of 2.5 years in the amount of 7 billion rubles at 7.4% per annum , the company said.
The rate corresponds to a yield to maturity of 7.61% per annum.
The collection of applications took place on September 25 from 11:00 to 15:00 Moscow time. Initially, the benchmark for the 1st coupon rate was 7.50-7.75% per annum, in the course of marketing it was lowered once. The placement volume was increased from “at least 5 billion rubles” to 7 billion rubles.
“Improvement in financial performance in the first half of 2020, despite the COVID-19 pandemic, allowed PIK Group to strengthen investor confidence, increase the issue volume and set a record low rate on bond issues in the company's history,” said the head of the investment banking department servicing Rosselkhozbank (acting as one of the organizers of the placement) Yuri Novikov.
The placement was organized by Alfa-Bank, BCS Global Markets, VTB Capital, Gazprombank, Rosselkhozbank and Sovcombank.
The technical placement is scheduled for September 30.
The previous time the company entered the debt market in December 2019. Then she placed a 5-year bond issue in the amount of 7 billion rubles at a rate of 8.25% per annum.
Currently, there are 7 issues of PIK GC (MOEX: PIKK) exchange-traded bonds for a total of RUB 61 billion and two issues of PIK-Corporation bonds for RUB 8.3 billion.
PIK Group of Companies is one of the largest Russian development companies with projects in Moscow, the Moscow Region and regions of Russia. The controlling shareholder of PIK (MCX: PIKK) with a 59% stake is Sergey Gordeev, VTB (MCX: VTBR) has 23%. The company's shares are traded on the Moscow Exchange.