On 27 October 2022, PAO Cherkizovo Group, a leader in Russia’s meat industry, placed another bond issue worth RUR 10 billion on Moscow Exchange, with BCS Global Markets acting as the Arranger. The first coupon rate target was no higher than 10.20% per annum but during book building the coupon rate target was lowered twice to 9.95% per annum (with the effective yield to maturity at 10.33% per annum). High investor demand drove an increase in size from RUR 5 billion to RUR 10 billion. With a maturity of 3 years, the issue was assigned an ‘A+(RU)’ credit rating by Russia’s credit agency ACRA.
PAO Cherkizovo Group (‘A+(RU)’ by ACRA, and ‘ruA+’ by Expert RA) is a major meat producer in Russia, with leading positions in the chicken, pork, turkey and sausage markets. According to the 2021 IFRS consolidated financial statements, it earned RUR 158bn in revenue, with EBITDA at RUR 29bn, and net debt / EBITDA at 2.6x.
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.