News

InfraClub hosted the Summit of Infrastructure Project Leaders

DEC' 2017

On December 15, 2017, the Community of infrastructure projects market professionals “InfraClub” together with the National Association of Concessionaires and Long-Term Infrastructure Investors (NAKDI) organized the Summit of Infrastructure Market Leaders in Moscow. Read more ...

The largest distributor and retailer of Omsk, Viktor Shkurenko, became a co-owner of the Skuratov Coffee chain

NOV' 17

The deal took place this summer. V. Shkurenko acquired more than a one-third of the companies operating the network, in exchange for obligation to finance a massive scale-up of this successful Omsk business in the regions. Read more ...

Novaport to build airport under Omsk?

JUL' 17

The owner of the Novaport group Roman Trotsenko reported plans to invest 11 billion rubles within 3 years in construction of the Fedorovka airport. Read more ...

Raedium Investments concluded agreement with Zabaikalskiy Region

JUN' 17

Raedium Investments Investment agency expands geography of activities. Read more ...

InfraClub performed presentation of PPP projects

APR' 17

In April, a new event called "Infrastructural Test Drive" took place at the Infrastructure Club (InfraClub) was held in Moscow. Read more ...

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Investment and financial adviser in regional projects in the private equity market

ATTRACTING FUNDS THROUGH FIXED LOANS

Organization of Classical Bond Issues

Together with our partners, Moscow-based investment company issue of private bonds and the passage of offers, and we also participate in the restructuring of bonded loans. In doing so, we act as a regional agent of Septem Capital, helping find customers and arrange interaction with them.

The Septem Capital team has the necessary licenses of a professional securities market participant. The extensive experience gained from the placement of bonds for more than 100 first and second-tier issuers for a total of over RUB 400 billion, as well as well-established partnerships with key participants of the Russian and foreign debt markets, allow for fast and efficient placement of bonds with minimal costs for the issuer.

The optimal number of key specialists and the absence of a huge administrative superstructure allow us to offer a competitive price for our services and successfully compete with banks that act as bond issue organizers.

The main services provided within the bond issue organization:

  • preparation of a strategy for working in the debt market;

  • recommendations for selecting the instrument and its parameters;

  • timing of entering the market;

  • preparation of emission documents and their registration;

  • road-show and non-deal road-show ("road show without the purpose of concluding a deal", a series of meetings with key investors with a brief presentation of the future placement);

  • underwriting a part of the issue (depending on the placement tactics) in order to reduce the rate of attraction;

  • use of the institution of the Representative of bondholders (tracking disclosure of information and covenants on issues);

  • management of the cost and term of borrowing through short-term liquidity operations for market participants through repurchase transactions;

  • preparation of credit analysis and financial model;

  • publication of brief analytical comments;

  • agent services for placement / technical underwriting;

  • services for obtaining the issue rating

The usual size of the issue of classic bonds which we are ready to arrange is from 1-2 billion rubles.

Requirements for the issuer of classic bonds:

  • revenue from 4-5 billion rubles / year;

  • debt / EBITDA ratio - no more than 4;

  • the company must be public, with a transparent economy and ownership structure;

  • it is desirable that there is no dispersion of business on the numerous companies of the group; an ideal case is when the business is concentrated on one company.

If a potential issuer is not currently a company with a positive reputation with a transparent ownership structure, or the business is dispersed across several companies of a group, we can prepare the business for entry into the securities market.

Organization of commercial bond issues

To actively growing small and medium-sized companies with high profitability, we offer to organize an issue of commercial bonds (CO) as an alternative to borrowing from bank, in partnership with the investment company Septem Capital.

As part of the work on the organization of issuing commercial bonds, we do the following:

  • maintaining the entire transaction, from making a decision on placement to receiving cash by the company and working with Investors in the secondary market;

  • work coordination in the process of placement of COs of all participants of the transaction: Company management, legal adviser (if any), the NSD (National Settlement Depository);

  • development of various options for structuring the transaction (terms, rates, coupons, etc.);

  • preparation of the investment documentation package: investment presentation, financial model, electronic "data room", documents for registration of the issue of CO;

  • registration in NSD the CO issue / program;

  • negotiating with Investors and preparing a road show;

  • opening the Book of Applications and collection of applications from potential Investors;

  • closing the Book of Applications and Issuer’s receipt of funds from Investors.

The amount of the bond issue is from 50 to 300 million rubles, the debut issue from 30 million rubles is possible. The circulation period is from 6 months up to 3 years.

Requirements for the issuer of commercial bonds:

  • high profitability of the activity (usually at least 30% per annum), which allows to pay investors an attractive coupon; the usual yield of the initial issue of commercial bonds is from 30% per annum, although 2-3 issues reduce the yield to 24-25%

  • profitability for at least the last 4 quarters

  • high inventory turnover, required because the circulation period of the first issues shall not exceed 12 months

  • an actively growing company increasing its market share

  • the owners and management of the issuer have a high business reputation

Commercial bonds in comparison with traditional bonds have a simplified order of issuance without state registration.