As demand during bookbuilding totaled 3.1 billion roubles, the coupon rate (the initial range was 9.50%-10.00% p.a.) was fixed at 9.75% p.a., setting the yield to maturity at 9.99% p.a. The maturity is three and a half years, with a one-year call provision. BCS Global Markets acts as the lead manager of the public placement scheduled to take place on November 24.
Shared efforts by the Issuer and the Managers resulted in significant oversubscription of 3.1 billion roubles against the 2.5 billion roubles, which was the initially plan. The bulk of the primary market orders came from retail investors, a repeat of the trend in the debut placement worth 3 billion roubles in July 2020.
“Encouraged by the success of the debut placement, we have decided to offer investors a second bond issue. High demand re-affirms market confidence in companies harnessing promising areas of the digital economy. MaximaTelecom operates in growing areas such as Big Data and digital services, adding value to the digital transformation of urban and transport infrastructure through its participation in major projects, delivering cutting-edge solutions for convenient lives in modern-day megacities. Strong interest from individuals highlights their belief in the Company’s potential and its commitment to the highest corporate governance standards,” said Boris Volpe, CEO, АО MaximaTelecom.
“Following a successful debut, the Company has decided to place another issue of exchange-traded bonds. We saw significant oversubscription for the new placement and, again, more than half of the orders came from individual investors, a signal that such companies are appealing to the market. Issuers like MaximaTelecom are prime examples to the formula that has enabled promising issuers to stage successful bond placements in the Russian debt market. You need a famous brand and meticulous preparation for each bond issue (IFRS reports, credit rating, etc.). Close collaboration with experienced Managers helps to ensure qualified support across all areas, particularly on pricing that would comfortable both to the Issuer and investors. We will continue to present top-notch investment opportunities such as MaximaTelecom to the market,” said Aleksey Kupriyanov, Head of DCM at BCS Global Markets.
AO MaximaTelecom is a public high-tech Russian company offering solutions for digital cities and transport. It is a leader in complex digitalization projects seeking to add value to the urban environment through big data, IoT, telemetry, and machine learning. It pioneered the world’s first high-speed free of charge Wi-Fi network on the subway rolling stock with its 2013 groundbreaking project on the Moscow metro. Currently, it operates the city-wide Wi-Fi network in Moscow, networks on municipal transit systems in Moscow and St. Petersburg, Kazan, and Magadan as well Russia’s regional airports.
The Company has a ‘BBB+(RU)’ credit rating from Russia’s rating agency АКRА, with the same expected rating of the issue, ‘eBBB+(RU)’.
A message from management of BCS Global Markets
The continuously evolving nature of the global coronavirus situation has meant we at BCS Global Markets (BCS) are taking all necessary steps to keep business disruption to an absolute minimum.
Effective from today (Wednesday 18th March) employees from all divisions of the business based in our Russia, UK, USA and Cyprus offices who can work from home without creating any even minor possible risk for business continuity of the Group will be working remotely. It is very much business as usual at BCS. Our employees are equipped with secure access to our systems and will follow their normal working hours, keeping in regular contact with their colleagues and clients.
Despite ongoing disruption caused by COVID-19, we want to also assure you that following a sustained period of positive performance, our capital and liquidity position remains very strong. The business is well-placed to meet any subsequent financial challenges and will continue to go above and beyond for our clients.