BAKU, Azerbaijan, Apr. 23
By Klavdiya Romakayeva - Trend:
S&P Global Ratings has assigned a B + rating to the issue of priority unsecured bonds of the Uzbek passenger car manufacturer UzAuto Motors JSC (B + / Stable / B), Trend reports referring to the agency.
Uzauto Motors JSC with the support of the Ministry of Finance of Uzbekistan announced to the participants of the world financial market about the forthcoming issue of its first international bonds in the amount of $300 million and holding teleconferences with international investors.
The underwriting bank is organized by leading international banks such as Citi (US), MUFG (Japan), Natixis (France) and Raiffeisen Bank International (Austria).
According to S&P Global Ratings, the rating of the issue corresponds to the long-term credit rating of the issuer of the company, since after the issue the bonds will not be subordinated in relation to other debt obligations of the company.
Moreover, the bonds will be placed directly by UzAuto Motors JSC, and not through a subsidiary, which also reduces the risk of subordination.
It is noted that UzAuto Motors JSC will use the proceeds from the issue to fund a large-scale capital expenditure program, mainly related to the Global Emerging Markets project to renew its lineup, including discontinuing production of obsolete models and launching GM (General Motors) models designed for emerging markets.
In addition, the company will refinance part of the outstanding debt. It was reported that this deal should help lengthen the company's debt repayment schedule and provide additional liquidity for the group.
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