FSK ASSETS raises 500 million rubles through its debut bond issue

On August 26, the first bonds issue of FSK Assets LLC was placed on the Moscow Exchange. The company raised 500 million rubles, with investor demand matching the announced amount.

The bond interest rate was set at 17% per annum, corresponding to a yield of 18.39%. The bonds were issued for a two-year term. Interests will be paid monthly. The nominal value each bond is 1,000 rubles.

The issue was arranged by Sber CIB, Alfa-Bank and Gazprombank. The latter also acts as the placement agent.

EVA Investment Company (EVA LLC) acts as the guarantor for FSK Assets LLC’s obligations to bondholders. The issue terms require that throughout the life of the bonds, the guarantor maintain its credit rating, and that FSK Assets LLC maintain a direct or indirect stake of at least 51% in the authorized capital of the operating companies Larta Glass Ryazan LLC, Larta Glass Rostov LLC, and Larta Glass Ramenskoye LLC.

The issuer, FSK Assets LLC, as part of EVA Investment Company, consolidates the Group’s industrial assets (glass and insulating glass production, and quartz sand extraction).

According to ACRA and NCR rating agencies, the bond issue of FSK Assets LLC series 001P- 01 (RU000A10FXT9) received two “A” level credit ratings.

The bonds are also available to private investors after passing the legally required testing. The issue also meets the requirements for investing pension savings and insurance reserves, as well as the requirements for inclusion in the Bank of Russia Lombard List.