On 1 November 2022, Russian logistics provider AO HC Novotrans placed a bond issue worth RUR 18.5 billion on Moscow Exchange, with BCS Global Markets acting as the Arranger.
The first target range of the coupon rate was 11.55-11.85% per annum but during book building the coupon rate target was lowered twice to the final rate of 11.70% per annum (with the effective yield to maturity at 10.22% per annum). High investor demand drove an almost twofold increase in size from RUR 10 billion to RUR 18.5 billion. The issue has a maturity of five years. It also has a put offer from OOO HC Novotrans, and a quarterly regular amortization starting from Year 4.
Novotrans Group of Companies (‘ruA+’ by Expert RA) is one of Russia’s largest private transportation holding companies, operating 29 firms across Russia and the CIS.
Novotrans offers the full range of services including railway freight operations thanks to in-house rolling stock, carriage maintenance, logistics solutions for third-parties, traffic handling, and stevedoring operations.
According to the 2021 IFRS consolidated financial statements, it earned RUR 37bn in revenue, with EBITDA at RUR 16bn, and net debt / EBITDA at 1.0x.
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.