Mining Machines Places Debut Bond Issue
The company operating under umbrella of Mining Machines Group issued the first bonds of UAH 50m (US$ 6.1m) on 5 November 2012. By mid-December the plant will place 5 issues of UAH 250m in total, an equivalent of US$30.6m at the current exchange rate. Each issue will sell 50,000 bonds of UAH 1,000 (US$ 122.5) each. With a maturity of three years, the instruments pay yields of 18% per annum on a quarterly basis.
Registered by the National Commission on Securities and Stock Market of Ukraine on 25 October 2012, the transaction engaged Altana Capital as the underwriter and listed bonds on PFTS Stock Exchange.
"The debut bond issue is a milestone for our company. We keep on building our positive credit history and are ready for high transparency and responsibility to investors arising from raising capital at the market," said Marina Grashchenkova, Head of Corporate Finance at Mining Machines. She added that market players showed big interest in the bonds. This proves that experts and analysts highly assess Mining Machines' management performance and are confident about future development of the group.
The proceeds will help to boost production, upgrade and repair equipment and meet the company's working capital needs.