Media

Seligdar has placed bonds for 10 billion Russian roubles on the Moscow Exchange. The par value of a bond is 1,000 Russian roubles; term to maturity is 3 years. The bonds have a semi-annual coupon; the coupon rate is 10.80%.

The managing banks of the issue were Gazprombank, Russian Agricultural Bank, Credit Bank of Moscow and Sinara Invest Bank. Gazprombank acted as the placement agent.

‘The placement went successfully. The volume of submitted purchase orders demonstrated the interest of Russian investors in Seligdar PJSC. For us, this is an additional confirmation that we are moving in the right direction. Over the past 3 years, the Holding has significantly scaled up its business by increasing its reserve base in both gold and tin divisions. Seligdar has strong assets and reserves that will last at least another 25 years. The Seligdar’s long-term development strategy up to 2030 envisages an increase in gold production by almost 3 times – up to 20 tonnes per year, and tin – more than 4 times, up to 14-16 thousand tonnes. The funds raised with bonds will be used to refinance short-term obligations,’ said the Chairman of the Seligdar Board of Directors Aleksandr Khrushch.

Initially, a plan to place bonds for 3 billion Russian roubles was announced. During the book building, the volume was increased up to 10 billion Russian roubles, while the coupon rate was repeatedly decreased from the initial rate of 11.28% to the final level of 10.80%. In addition, the debut placement saw increased demand from retail investors, whose share in the final order book amounted to about 10%.

The issue is placed as part of the 001P series exchange-traded bonds programme in the amount of up to 60 billion Russian roubles or its equivalent in foreign currency.