ChelPipe Group successfully issued debut Eurobonds worth $300 M

MOSCOW, RUSSIA – EQS Newswire�- October 1, 2019 – Public
Joint-Stock Company Chelyabinsk Pipe Plant (Chelpipe PJSC), a leading Russian
manufacturer of tubular products and provider of integrated solutions for
companies of the fuel and energy industry, announces the successful placement
of inaugural USD 300 million 4.5% Guaranteed Notes due 2024.

Good credit history of the company and
favourable market conditions attracted a great number of investors within the
framework of the five-day road show in Moscow, Zurich, Frankfurt, New York and
London. Consequently, in the original price range of 4.75-5%, the order book
exceeded 1 bn US dollars, which made it possible to cut the rate twice and
close the deal at 4.5%.

The final order book lists around 100 names
including investors from the United Kingdom (30%), Russia (28%), ?ontinental
Europe (23%), Asia (14%) and the United States (5%). Around 52% of the bonds
issued were acquired by asset management companies, funds and insurance
companies, and 48% by banks and private banking.

Citi, Gazprombank, J.P. Morgan and Société
Générale acted as the Joint Bookrunners and Global Coordinators, Renaissance
acted as Joint Bookrunner and Sovcombank as Co-manager. The USD 300 million
4.5% Guaranteed Notes due in September 2024 were issued by Chelpipe Finance
DAC, an Irish company founded for the sole purpose of issuing debt instruments
and financing loans to ChelPipe Group.

ChelPipe is planning to spend the revenue from
bond issue to pay back ruble loans to optimize the debenture portfolio.

— We’ve made a successful entry into the
international debt financing market. The lowest dollar rate for the debut bond
issue among corporate borrowers in Russia and the CIS since 2013, almost
three-fold oversubscription and more than 70% orders from international
investors in the final order book demonstrate good creditworthiness of ChelPipe
Group, — says ChelPipe CFO Valery Borisov.

Note, ChelPipe Group places rouble bonds on the
Moscow exchange — four series of exchange bonds for a total amount of RUB 25
billion are now listed.

Reference:

The ChelPipe
Group is one of Russia’s leading groups of iron and steel companies. The
company produced 16.5% of all pipes manufactured by Russian companies in 2018.
ChelPipe Group comprises iron and steel plants such as Chelyabinsk Pipe Plant,
Pervouralsk 

New Pipe Plant, a complex of warehouses supplying the
Group’s pipe products to Russian regions, a company specializing in sourcing
and processing scrap metal (META), facilities producing pipeline equipment
(SOT, ETERNO, MSA (Czech Republic)), and the Rimera Group, responsible for
oilfield services.