On 10 November 2022, Russia’s timber industry leader Segezha Group PJSC placed a debut issue of CNY-denominated exchange-traded bonds worth CNY 500 million on Moscow Exchange, with BCS Global Markets acting as the Arranger. The first coupon rate target was set at not higher than 4.50% per annum but during book building the final coupon was fixed at 4.15% per annum (with the effective yield to put at 4.22% per annum). With a maturity of 15 years and a put option in three years, the issue was assigned an ‘ruA+ (EXP)’ expected credit rating by Russia’s credit agency Expert RA.
Segezha Group PJSC (‘ruA+’ by Expert RA) is a unique Russian timber industry holding with a full cycle of timber operations and a wide range of high-margin wood products. The company has promoted the use of sustainable technology for deep processing of timber and a circular business model, trimming operational waste. According to the 2021 IFRS consolidated financial statements, it earned RUR 92.0bn in revenue, with OIBDA at RUR 29bn, and net debt / OIBDA at 2.1x.