News for Investors
Obuv Rossii Places 4-Year Exchange-Traded Bonds Worth RUB 1.5 bln
Obuv Rossii LLC that is part of OR GROUP placed 4-year series 001P-04 exchange-traded bonds (issue identification number 4B02-04-00412-R-001P of 14 Jan. 2020) at MICEX under a program of stock-traded bond series 001P. The nominal amount of the issue is RUB 1.5 billion, organized by Ivolga Kapital LLC. The purpose of raising funds is to create a reserve due to the possible announcement of offers for covenant bond issues, as well as to refinance of the current debt portfolio of the Group.
The issue includes 1.5 mln bonds with the par value of RUB 1000 each. The loan provides for the payment every month. The coupon rate is set as 11% per annum; the coupon size is RUB 9.04 per one bond. This release is characterized by lightweight covenants. Amortization is provided, 10% of the nominal value of the bonds will be paid in the last 10 months.
«At the end of 2020, we announced the launch of rebranding and changed the positioning: the company goes beyond the fashion segment and becomes a universal retailer, developing a modern trading platform and online marketplace. The plans for 2021 are to improve the new business model, increase sales of partner products in the retail network and on the marketplace westfalika.ru, develop add-on services for our customers, — comments Anton Titov, CEO of OR GROUP. — The successful placement of the next bond issue indicates investors’ confidence in the company. This issue is characterized by a longer circulation period and a lower rate compared to previous issues of the Group's bonds».
Obuv Rossii has been carrying out a bond program since summer 2011. Over nine years, the Group has placed bonds for the total amount of RUB 10.7 bln. Now five issues of Company bonds for RUB 5.5 bln are being traded at MICEX. This floatation has demonstrated high interest from investors; issue of 1.5 billion rubles. was placed from 19.01.2021 to 28.01.2021.
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