22 September, 2016. – The investment company O1 Properties, one of the largest owners of A – class office property in Moscow, has placed a debut issue of Eurobonds for value of $350 million with coupon at 8.25% per annum. The period of the securities circulation will amount to 5 years. Credit Suisse, Goldman Sachs International, J. P. Morgan, Raiffeisen Bank International AG and VTB Capital acted as organizers of this placement.
Attracted funds will be used for reducing the debt load of O1 Properties. The debut Eurobonds were bought out by investors from continental Europe (31%), Russia (28%), USA (15%), Switzerland (13%), UK (11%), Asia, Middle East and Northern Africa (2%).
The buyers’ structure was dominated by funds and asset managers – they accounted for 54% of the placement, banks acquired 32%, private banking representatives, respectively, –14%. High demand for the securities on the part of international and Russian investors allowed to increase the volume of placement from $300 million up to $350 million.
Dmitry Mints, Chairman of the Board of Directors of O1 Properties: “High level of corporate management and transparency of our business allowed O1 Properties to enter international public debt markets. The placement of these five-year Eurobonds is a positive step towards company development from the standpoint of funding sources diversification and demonstrates high level of trust of international investors in O1 Properties as an issuer, as well as in Russian real estate market”.
O1 Properties’ portfolio values $3.8 billion and includes 13 A class business centers in Moscow with the total rentable area of more than 501,000 sq m. Net rental income of O1 Properties in HI of 2016 amounted to $154 million, total net debt as of 30 June – $2.7 billion.View PDF