News

Obuv Rossii Places 5-Year Exchange-Traded Bonds Worth RUB 1 bln

9 January 2020

Obuv Rossii LLC that is part of the Obuv Rossii Group placed 5-year series 001P-02 exchange-traded bonds (issue identification number 4B02-02-00412-R-001P of 09 Dec. 2020) at MICEX under a program of stock-traded bond series 001P. The nominal amount of the issue is RUB 1 bln, organized by Ivolga Kapital LLC and Aton LLC.

The issue includes 1 mln bonds with the par value of RUB 1,000 each. The loan provides for the payment every month. The coupon rate is set as 12% per annum; the coupon size is RUB 9.86 per one bond. Amortization is provided for: on the end dates of coupon periods 33, 36, 39, 42, 45, 48, 51, 54, 57, and 60, 10% of the par value of the bonds is planned to be paid.

“In 2017-2019, the Company expanded its retail network two times — from 452 to 915 stores. The key aims for 2020 include an increase the efficiency of work of our retail, increased proceeds from a square meter; and increased group of loyal customers. We will focus on the growth of operating, financial performance and achieving the full capacity utilization of our sales outlets opened within the previous two years,” comments Anton Titov, General Director of Obuv Rossii Group. “We have been implementing a bond program and aggressively operating on the open money market. We are using the whole range of financial instruments – from classical bank credits to joint-stock capital. In 2019, we proceeded to a new stage in the implementation of our program to attract financing on the capital market which is different as we now look more at the retail market and prioritize over private investors.”

Obuv Rossii has been carrying out a bond program since summer 2011. Over eight years, the Group placed bonds for the total amount of RUB 8.7 bln. Now three issues of Company bonds for RUB 3.5 bln are being traded at MICEX.