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SIBUR considering dollar-denominated Eurobond issue

September 19/2019

MOSCOW (MRC) -- SIBUR Holding, Russia’s largest integrated petrochemicals company, announces the successful float of five-year Eurobonds worth USD500 million on the Irish Stock Exchange, said the company.

The initial coupon rate, set at 3.75% per annum, decreased to 3.45% per annum during the book-building. Coupon payments will be made every six months. The Company intends to use the funds to continue carrying out its growth strategy and to optimize its credit portfolio.

Goldman Sachs, J.P. Morgan, Gazprombank and Sberbank CIB acted as lead coordinators and book runners, while Banca IMI SpA was the lead manager. The total demand exceeded USD1.3 billion. The Company’s Eurobonds were purchased by global investors, more than half of which were foreign ones (Russia, 41%; Continental Europe, 26%; Asia and MENA, 15%; the UK 11%; the USA, 7%). Moody’s rated the bonds at Baa3, while Fitch gave them a rating of BBB-.

Alexander Petrov, SIBUR’s Managing Director for Economics and Finance and a member of the Company’s Management Board, noted: “Since the Company placed its first Eurobonds back in 2013, SIBUR has undertaken a substantial transformation of its business, implementing large-scale investment projects and forming a solid foundation for long-term sustainable growth. While its business developed, the Company’s indebtedness remained at a comfortable level. I am pleased to announce that we have taken another successful step in public capital markets, and I am grateful to investors who value our business model, which ensures sustainable growth”.

In 2018, SIBUR reported revenue of USD 9.1 billion and EBITDA of USD 3.2 billion. Over the past 10 years, SIBUR has implemented a number of large-scale investment projects worth more than RUB 850 billion. Each year, the Company spends no less than 70% of its EBITDA to finance the investment program, while maintaining a balanced debt burden.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. Meanwhile, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

SIBUR is the leader of the Russian petrochemical industry and one of the largest companies globally in this sector. It has more than 26,000 employees. The Company’s unique vertically integrated business model allows it to create highly competitive products consumed in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide.
Author:Anna Larionova
Tags:ethylene, Sibur Tobolsk, Sibur Holding.
Category:General News
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