On April 29, MICEX placed ОАО Gazenergoset's second bond issue. The competition resulted in the issuer setting the first coupon rate at 10.75% per annum, with a return to offer of 11.04% pa in 1.5 years.
A total of 45 investors applied for the RUR 2 bln in bonds offered during the placement, with annual interest rate bids ranging from 10.18% to 11.00%. The entire issue was placed during the auction.
The issue was organized by Raiffeisenbank, with the following financial institutions also participating; co-organizer — Gasenergoprombank; principal underwriters — Bank Zenit and Promsvyazbank; underwriters — Euroasia Group and ОАО Petrokommerts Bank; со-underwriters — Nord Kapital, IG Region, Transinvestbank.
The bonds are to mature in five years at a total nominal cost of RUR1.5bn. The issue will be paid in semi-annual coupons. The rate for 1-3 coupons is 10.75% pa, with the rates of subsequent coupons to be determined by the issuer, who has given bond owners a right of early redemption at nominal cost in 1.5 years.
All payments on the issue are guaranteed by ОАО Gazenergoset's largest subsidiary, ООО YUNGK, a petroleum wholesaler and retailer operating in the Rostov and Krasnodar regions whose annual revenue exceeds that of ОАО Gazenergoset by more than 50%.
The receipts from the bond placement are to be used to develop the company's retail trading business in liquefied gas and petroleum.
Gazenergoset is a member of Gazprom Group; the company is OAO Gazprom's sole authorized operator in the LPG (liquefied petroleum gas) market and the largest supplier of commercial LPG in Russia. The company includes a propellant production plant, 18 gas-filling stations, 12 gas-filling points, 49 service stations, 4 petroleum product storage and distribution centers, and 26 petrol stations. All the company’s retail assets operate under the Gazprom brand. In 2007, OAO Gazenergoset reported revenue of more than RUR 31.6 bln, net profit of RUR 400 mln, finishing the year with a Debt/EBITDA ratio of 2.6X. For more detailed information, please see the company's official website.
Raiffeisenbank is recognized as a leader on the Russian corporate bond market. In 2001-2008 Raiffeisenbank acted as a lead manager or co-manager for 136 corporate bond issues with a total nominal value of RUR 423 billion.
ZAO Raiffeisenbank is a subsidiary of Raiffeisen International Bank-Holding AG. Raiffeisenbank is the largest foreign-owned bank in Russia, ranking 7th in terms of assets among top Russian banks based on 2007 results (Interfax-CEA). Raiffeisenbank is ranked 7th in terms of corporate lending based on 2007 results (Interfax-CEA). According to Interfax-CEA, ZAO Raiffeisenbank ranked 4th in Russia in terms of private deposits and 6th in consumer lending in Russia based on 2007 results.
Raiffeisen International operates one of the largest banking networks in CEE. 17 markets of Europe’s growth region are covered by subsidiary banks, finance leasing companies, a representative office and a number of other financial service providers. Over 14 million customers are attended to through more than 3,000 business outlets. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Osterreich AG (RZB), which owns 68.5 per cent of the common stock. The balance is free float, the shares are traded on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group.