ChelPipe Group successfully issued debut Eurobonds worth $300 M

October 01, 2019 - 13:27
ChelPipe Group successfully issued debut Eurobonds worth $300 M

MOSCOW, RUSSIA - EQS Newswire - October 1, 2019 - PublicJoint-Stock Company Chelyabinsk Pipe Plant (Chelpipe PJSC), a leading Russianmanufacturer of tubular products and provider of integrated solutions forcompanies of the fuel and energy industry, announces the successful placementof inaugural USD 300 million 4.5% Guaranteed Notes due 2024.

Good credit history of the company andfavourable market conditions attracted a great number of investors within theframework of the five-day road show in Moscow, Zurich, Frankfurt, New York andLondon. Consequently, in the original price range of 4.75-5%, the order bookexceeded 1 bn US dollars, which made it possible to cut the rate twice andclose the deal at 4.5%.

The final order book lists around 100 namesincluding investors from the United Kingdom (30%), Russia (28%), СontinentalEurope (23%), Asia (14%) and the United States (5%). Around 52% of the bondsissued were acquired by asset management companies, funds and insurancecompanies, and 48% by banks and private banking.

Citi, Gazprombank, J.P. Morgan and SociétéGénérale acted as the Joint Bookrunners and Global Coordinators, Renaissanceacted as Joint Bookrunner and Sovcombank as Co-manager. The USD 300 million4.5% Guaranteed Notes due in September 2024 were issued by Chelpipe FinanceDAC, an Irish company founded for the sole purpose of issuing debt instrumentsand financing loans to ChelPipe Group.

ChelPipe is planning to spend the revenue frombond issue to pay back ruble loans to optimize the debenture portfolio.

-- We've made a successful entry into theinternational debt financing market. The lowest dollar rate for the debut bondissue among corporate borrowers in Russia and the CIS since 2013, almostthree-fold oversubscription and more than 70% orders from internationalinvestors in the final order book demonstrate good creditworthiness of ChelPipeGroup, -- says ChelPipe CFO Valery Borisov.

Note, ChelPipe Group places rouble bonds on theMoscow exchange -- four series of exchange bonds for a total amount of RUB 25billion are now listed.


The ChelPipeGroup is one of Russia's leading groups of iron and steel companies. Thecompany produced 16.5% of all pipes manufactured by Russian companies in 2018.ChelPipe Group comprises iron and steel plants such as Chelyabinsk Pipe Plant,Pervouralsk 

New Pipe Plant, a complex of warehouses supplying theGroup's pipe products to Russian regions, a company specializing in sourcingand processing scrap metal (META), facilities producing pipeline equipment(SOT, ETERNO, MSA (Czech Republic)), and the Rimera Group, responsible foroilfield services.