OREANDA-NEWS. November 23, 2015. RusRating has lowered its credit ratings on the BO-01 bond series issued by Transgazservis from “C” to “D” on the international scale and from “CC” to “C” on the national scale. The ratings were then withdrawn.

The rating cut followed a technical default on coupon payments due 13 November 2015.

About the Issue

The five million non-convertible, interest-bearing, documentary, centrally-held bearer exchange bonds (series BO-01) have a nominal value of one thousand roubles each (R5bn in total) and come due 1820 days from the issue date (14.11.2014), i.e. on 08.11.2019. Placement took place via open subscription and was organised by the investment company IK RONIN. The securities include provisions for early redemption at the initiative of bondholders.

About the Issuer

Transgazservis is a Russian SPV company registered in 2009 that issued bonds on behalf of a major financial-industrial group, which has ceased operations. The group was headed by Bank Rossiiski Kredit, whose license was withdrawn by the Central Bank of Russia on 24 July 2015.

The funds generated by the issue were invested in the Agroholding project, which aimed to develop an agricultural cluster in Tula region on behalf of the above-mentioned financial-industrial group. Specifically the project involves development of the Yefremov and Suvorov poultry (egg) plants plus construction of a new poultry plant, greenhouse facilities and a pig-breeding farm.

The issuer had previously placed and redeemed a R3bn bond series.