BSTDB OBTAINS TRANS-OIL BONDS TO AMOUNT OF US$22.25M

The Black Sea Trade and Development Bank has become an anchor investor in a bond issued by the Trans-Oil Group, the first corporate bond ever in Moldova. BSTDB provided an amount of US$ 22.25 million out of the US$ 300 million offering.

“Corporate bonds are important tools for large companies to raise capital for investment projects. We are very pleased with the successful introduction of this market instrument in Moldova and with the BSTDB’s role in this innovative venture of Trans-Oil that will benefit Moldova’s real economy and promote regional cooperation”, said BSTDB President Dmitry Pankin.

Commenting on the deal, Vaja Jhashi, CEO of Trans-Oil Group said that Trans-Oil Group is very pleased with the transaction having established its benchmark Eurobond footprint in the Public Debt Capital Markets.

“The Group has managed to attract significant interest from high quality institutional investors worldwide and opened the path for Moldova to further development of its investment and credit story. The Group is grateful to BSTDB, its long-standing financial partner, for anchoring and supporting this import transaction for the country and the region in general”, said Vaja Jhashi.

The proceeds of the bond will enable Trans-Oil to diversify its funding base and consolidate its position on the international market. As a result, Trans-Oil will be able to expand its capital investment program in the markets of Moldova and Romania, said the BSTDB press release.

As was already reported by Infotag, the Republic of Moldova’s largest Trans–Oil (Aragvi Holding International Ltd.) agri-industrial holding has placed its 5-year-maturity bonds on the markets of Europe and the United States. The yield on the bond is slightly over 12%. The bond issuer has the right of an early redeeming of the papers from investors.

A London broker of a major international company said to Infotag by phone that the very fact of placing its bonds by Trans-Oil has attracted the attention of serious investors to the Moldovan company, and “I can say that some of them are seriously considering their joining the capital of Trans-Oil, with an account of the company’s good development perspectives”, added the broker.

Two prominent rating agencies, Fitch and S&P, have given the “B” (Stable) rating to the Trans-Oil Group.

Trans-Oil Group is the largest producer of vegetable oil and refined bottled vegetable oil, with corresponding market shares of 80% and 90%. It is also the largest exporter of sunflower seeds and wheat from Moldova. The Group owns 75% of all storage facilities for grain in Moldova, a port terminal, a fleet of rail cars and trucks.

The Group has a solid client base comprising both international and regional end-users and trading houses from Europe, Southern Mediterranean, Turkey, and Africa.