Eurobonds of "Moldavian Gazprom"
InfoMarket agency comments.
Against the backdrop of a political crisis (or stagnation), not many people paid attention to a sensational (without exaggeration) event: for the first time since the declared independence of Moldova, a single Moldovan company placed 5-year Eurobonds, that is, received funding from the European corporate stock market.
The Trans-Oil Group unites more than 20 companies with assets managed by the holding - Aragvi Holding International Limited. International rating agencies - Fitch , S & P were involved before the placement. The Group and Eurobonds were assigned a stable rating of B and B-.
The Black Sea Bank for Trade and Development (BSTDB) became the main investor of the Group (it was announced a week after the issue of Eurobonds), which bought the Eurobonds in the amount of $ 22.25 million.
The Trans-Oil Group needs long-term and large-scale financing inside the Group we received the following comments: "Long-term financing will allow the Group to concentrate attention on the strategic objectives set for further development."
The InfoMarket agency has described repeatedly the production facilities of the Trans-Oil group of companies in details, the importance of it for the country's economy cannot be overestimated. A Russian expert, who knows the group very well, once said in a private conversation that "Trans-Oil for Moldova, like Gazprom for Russia..."
The Group is the largest producer of vegetable oil and refined vegetable oil in bottles with a market share of 80% and 90% in Moldova. It is also known as the largest exporter of sunflower seeds and wheat from Moldova. The group controls 14 elevators (85% of total storage capacity of oilseeds and grains in Moldova); It owns two modern oil refineries with a total processing capacity of 1.6 thousand tons of sunflower per day, three modern transshipment terminals at the port of Giurgiulesti.
It is the largest player by the standards of Moldova, it is also on the list of the 20 largest agricultural holdings of the Black Sea region taking into account the land area of the country.
In addition, the Group has two terminals in the port of Reni (Ukraine), which is located near the port of Giurgiulesti, and according to the news of last week - Trans-Oil buys a plant in Romania for the production of vegetable oils, "Tandarei" oilseed crushing plant and vegetable oil producer. The amount of the transaction was not disclosed, but the money was borrowed from a long-term partner of the holding, the International Investment Bank, also provided a loan for the purchase.
The Moldovan press notes that the need for international funding is driving the Trans-Oil group out of "information blockade." The information about the work of the group was rather undisclosed two or three years ago. More and more information has appeared in recent years, about the Group, the results of its operations and new investments. The Group, as a general sponsor, organized the Agrarian and Logistics "Dnieper-Danube-Black Sea" forum for two years in a row in Chisinau.
All mentioned above makes a positive influence on the image of the Group according to investors, as a serious and open partner not only for different investors and banks, but also for the economy as a whole, as well as for the participants of foreign markets, local investors and observers.
Concluding remarks, it should be noted that these are not the first Eurobonds in Moldova: the country (as a state) issued $75 million Eurobonds with a 9.875% coupon in 1997. The country was supposed to clear the bills back in five years by 2002, but the first regional economic crisis happened during this period so the assets buyout was delayed heavily with the country’s rating downgrade... The story with the subsequent buyout of overdue Eurobonds at discount price deserves to be included in the textbooks. Eurobonds were fully bought out in 2009 finally, but this type of financing was not implemented in the country anymore.
Against the background of this old story, Eurobonds issued by the Moldovan holding Trans-Oil are of great importance for the reputation of the country, not only at European financial markets. //17.04.19 - InfoMarket.