03.11.2016 Moscow Domodedovo Airport is glad to announce a successful closing of its Eurobond issuance transaction
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The new USD 350 mln 5.875% Eurobond issue maturing in 2021 will be placed in line with the Regulation S of the US Securities Act. The institutional investor base includes most prominent banks and investment funds from Russia, Switzerland, Great Britain, the USA and Asia-Pacific countries. The bonds will be listed on the Irish Stock Exchange.
DME Airport Designated Activity Company acted as the issuer. Joint Lead Managers of the placement: ING Bank N.V., Societe Generale Corporate & Investment Banking, UBS Limited.
“Despite subdued conditions on the financial markets, the issue has attracted strong demand from foreign investors. The final book of orders was brought to a balance among institutional investors, private banks and Russian investors. The successful result of this issue that features a lower coupon and a larger volume than the debut transaction in 2013 has enabled the company to broaden its investor base and equipped it with the toolkit to further build its yield curve on the international debt capital markets,” says Ranko Milic, Executive Director, Head of CEEMEA Debt Capital Markets at UBS.
‘The market has demonstrated appetite towards our securities and trust towards our business. The demand has outstripped the supply almost by a factor of three. In conjunction with investors, we arrived at quite comfortable conditions, both in terms of the price and the volume of the issue,’ states Denis Nuzhdin, IR & GR Director of Moscow Domodedovo Airport.
As a result of the tender conducted by the company to buy back outstanding Eurobonds maturing in 2018, investors have also demonstrated their trust towards the issuer. The total amount of the put 2018 Eurobonds accepted for exchange was USD 78.6 mln.
The raised proceeds will be channeled into the buyout of the outstanding 2018 bonds and financing of the construction of the T2, new segment of the passenger terminal.