OREANDA-NEWS. November 08, 2012. On November 1 2012, the order book was closed for CJSC Europlan’s issue of series 03 bonds.

The series 03 bonds have a maturity period of five years, a put option after two years and pay semi-annual coupons.

Twenty-three investor bids were received for the bonds. Upon the conclusion of book-building, the coupon rate was set at 11.25%, which corresponds to the lower end of the announced range (11.25-11.75%). The high end of the range was lowered twice during book-building.

Despite instability in the market at the time of the placement, demand for the bonds exceeded the initial issuance by 1.5 times. The strong display of interest from investors allowed the offering to be increased from RUB 3 bln to 3.5 bln.

Arrangers: Raiffeisen Bank and Sberbank CIB1.

CJSC Europlan’s credit rating according to Fitch Rating Agency – “BB-”

The deal was one of the largest among the few ruble-denominated bond placements by independent licensing companies. The successful bond issue by CJSC Europlan again demonstrates the company’s high credit-worthiness, which was evaluated favorably by investors.

CJSC President Nikolai Zinoviev commented on the placement, “Despite the objectively difficult market and the traditionally skeptical attitude of Russian investors towards the licensing industry, the deal was successfully completed. In the current market investors are very particular in their investment choices and look primarily for high-quality issuers who are leaders in their industries. There is an emphasis on proven business models that have withstood the crisis, have a strong credit profile as well as solid financial and operational results. We are pleased that investors favorably evaluated CJSC Europlan by submitting a large quantity of bids with a coupon rate below the lower book-building range.