OREANDA-NEWS. December 26, 2016. Public Joint Stock Company Chelyabinsk Pipe plant (ChelPipe), the leading Russian manufacturer of pipe products and provider of integrated solutions for energy companies, announces the successfully closed book-building for the company’s debut issue of exchange-traded bonds (BO series 001P-01) with total nominal size of RUB 5 bln, placed under the Program.

The ChelPipe’s offer with initial coupon rate guidance in a range of 10.75-11.00% raised intense interest of many investors. In the course of the book-building, 28 applications were submitted from all categories of market investors, including a diversified group of banks, institutional investors, investment companies, and individuals. The significant demand for ChelPipe bonds helped close the book at the lower limit of the initial guidance with more than three-fold oversubscription.

The issue of the bonds was structured in a classical way, with a coupon period of 182 days and redemption at the maturity date. The par value of a bond is RUB 1,000. The maturity terms is 4 years after the placement date.

‘The deal became the logical continuation of the company’s work to return to the public debt capital market. The high interest in the issue among market participants allowed closure of the book at the lower bound of the price range. We are grateful to investors for their high estimation of the company’s credit quality and the investment attractiveness of our bonds’, commented Valery Borisov, ChelPipe CFO.

The technical placement of the bonds will take place on December 29, 2016 on the Moscow Exchange.

The book runners of the deal are Gazprombank, VTB Capital and Sberbank SIB. The placement agent is Gazprombank. 

The Exchange-Traded Bonds Program with a nominal value of RUB 50 billion or equal value in foreign currency was registered on November 29, 2016.