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9 September 2021
RIA Novosti
Foreign investors bought almost 90% of Phosagro's new Eurobonds-organizer

Foreign investors bought almost 90% of the issue of new Eurobonds of Phosagro, Andrey Solovyov, head of the Debt capital Markets department of VTB Capital, who was one of the organizers of the transaction, told RIA Novosti.

The company collected applications for Eurobonds for $ 500 million with maturity in September 2028 on Thursday. The initial yield target was set at about 3.25% per annum, but during the collection of applications it was reduced to the final level of 2.6% per annum.

"The issuer has a high level of credit risk, so the demand from international investors was very high. As part of the transaction, more than 200 investors submitted their applications. The book was oversubscribed almost seven times, which is a record for such placement, at the peak the volume of the book reached more than 3.25 billion dollars, " Solovyov said.

According to him, investors from Europe bought 36% of the securities, 24% of the issue fell on British investors, 16% - on American, 11% of the securities went to Russian investors, investors from Asia and the Middle East bought 9% of the issue, 3% fell on Swiss investors and 1% on investors from other regions. Asset managers bought 74% of securities, banks accounted for 18%, insurance and pension funds accounted for 4%, hedge funds bought 4%.

Since September 7, the company has held a series of calls with investors on the possible placement of Eurobonds. Depending on market conditions, the company planned to place the securities for five or seven years.

The placement was organized by BofA Securities, Citi, Gazprombank, J. P. Morgan, Raiffeisen Bank International, Renaissance Capital, SberCIB, UniCredit and VTB Capital.
Corporate Communications VTB Capital