“Grodno Azot” issued corporate bonds


In the midst of the global financial crisis PC“Grodno Azot”took the risk - carried out the first issue of corporate bonds.

Grodno chemists gainedtheirexperience in not reallysuccessful period - the fall of 2008. The banks did not have enough free cash,interest rateswere growing. Letter-requests were sent to a number of banks to consider the possibility and conditions of purchase of bonds, to provide services in arranging their release.

- To issue a win-win situation, and joint-stock company was able to replenish working capital, - says the Deputy Director General for Economy and Investment Tamara Poslednyaya- have decided tomakeissue closed. The issue with the buyer on the full redemption of the total emissionwasworked out.

Banks consideredthe offer, defined the parameters of the bond issue: Amount - 10 billion rubles, par value - 1,000,000 rubles.

At the meeting of the Supervisory Board of “Grodno Azot”was determinedthesole purchaser of bonds issued-JSC Belarusbank.

The obligations under the bonds weresecured on real estate. This is a very long-term and labor-intensive process, corresponding to a number of requirements. Assets pledged as collateral must be liquid and workable, it is desirable to have a low percentage of wear.

What kind of benefits received "GrodnoAzot" from the first bond issue? The company gainedthe means to replenish working capital. The experience gained willhelp toavoid many mistakes in caseof the next bond issue, whichis being worked on.

According to Tamara Poslednyaya, the second issue of corporate bonds will fully repay the first loan, to expand the circle of potential lenders, to provide public recognition and gain experience in dealing with securities.

Grodno chemists sharedtheirfirst experience at the meeting-seminar on the issue of corporate securities on the basis of "GrodnoAzot”. It was attended by representatives of allBelneftekhim companies and a number of banks. 

According to Belarusian portal TUT.BY