Sibsteklo will place the third bond issue on the MICEX

Dear colleagues, we are publishing news about the member of the Association "StekloSouz" of Russia, Siberian Glass LLC (“Sibsteklo”):

On October 19, the Moscow International Currency Exchange will start placing a new bond issue of Siberian Glass LLC (Sibsteklo, the largest manufacturer of glass containers outside the Urals) under number 4B02-04-00373-R-001P - the issuer intends to raise 300 million rubles.

According to Anton Mor, General Director of Sibstekl, against the backdrop of financial market volatility and rising costs of resources, which has led to a reduction in deferred payments to suppliers, the funds are planned to be used to replenish working capital in order to carry out routine repairs and maintenance of equipment to further increase production volumes. Sibstekl also needs to create reserves of glass containers in order to satisfy demand in the so-called high season (spring-summer), guaranteeing a sufficient level of sales, and accumulate stocks of raw materials for an uninterrupted supply of glass complexes.

The issue was proposed publicly within the framework of a 50-year program for a total amount of up to 750 million rubles. The face value of one bond is 1,000 rubles, the circulation period of securities is 1,440 days. The coupon rate is 17% per annum from coupon periods 1 to 18, then an irrevocable offer is assumed. The yield target is 18.39%. Duration is estimated at 2.88 years. On the end dates of each of the 47 and 48 coupon periods, the issuer will repay 50% of the face value of the bonds. Their liquidity will be ensured by the work of a market maker who maintains the balance of supply and demand.

Let us remind you that there are currently two bond issues of Sibstekla in circulation for a total amount of 425 million rubles; the company has been issuing bonds since October 2020.

“Sibsteklo is striving to diversify its sources of financing,” comments Anton Mor. – A bond loan is an instrument comparable in cost to bank lending, but at the same time more flexible, including due to the absence of mandatory requirements in terms of collateral and guarantees; in addition, we have the ability to manage debt. Thus, we continue to build a public debt history. It is based on the sustainability of Sibstekla’s business model, positive dynamics of key indicators and fulfillment of the issuer’s obligations, thanks to which securities market participants trust us. We hope that our reputation as a reliable borrower will allow us to enter an IPO within five years and interact with strategic investors.