REATORG: EXCHANGE BONDS - THE WAY TO DEVELOPMENT!

At the end of October, REATORG LLC placed its debut issue of exchange-traded bonds!

The Russian bond market is going through hard times - the bonds of Russian companies at the beginning of the year were inferior in profitability to bank deposits. But even under these conditions, Russian investors continue to receive excellent opportunities for investment in the domestic stock market.

The debut bond issue of REATORG Company is not the first bonds from the chemical industry sector, but the first issue of an engineering company from this area, which may become an additional competitive advantage in the placement.

Currently, REATORG Company occupies a leading position in the field of design and complex equipment of chemical and pharmaceutical industries and laboratories and is optimistic about the future.

In the second half of 2022, REATORG is actively growing and developing - major contracts have been signed in various areas of the company's activities, such as engineering work, design work, supply of industrial and laboratory equipment, consumables:

Pharmaceutical industry:

- BIOCAD - supply of laboratory equipment and consumables;

- Izvarino Pharma - designing a new site for the synthesis of API;

- Biohimic - a comprehensive project to equip a new workshop for the production of APIs on a turnkey basis (design, equipment supply, service and warranty maintenance);

- Novo Nordisk - supply of equipment and consumables;

- AVVA RUS - supply of industrial equipment.

Chemical industry:

- SIBUR Group (JSC VORONEZHSINTEZKAUCHUK, JSC SIBUR-KHIMPROM, LLC SIBUR-Kstovo, JSC SIBUR-Neftekhim, JSC SiburTyumenGaz, JSC POLIEF, LLC SIBUR, JSC SIBUR-PET, ZapSibNeftekhim LLC, NIOST LLC) - equipping with equipment and consumables;

- Perm Chemical Company – equipping with equipment and consumables.

Research and educational institutions:

- University of Science and Technology MISIS - supply of laboratory equipment;

- Federal Scientific Center for Food Systems. V.M. Gorbatov RAS - supply of laboratory equipment, as well as the creation of a training center on the basis of the supplied equipment.

On October 24, 2022, the National Rating Agency (NRA) assigned REATORG LLC a BB+ credit rating with a stable outlook, and we positively perceive the rating received as recognition of the Company's appropriate strong status in such a difficult economic environment.

The key factors in the assessment of the National Rating Agency were:

•      Long term of work in the market: The company has been operating for more than 10 years;

•      Low dependence on product suppliers: the share of the largest supplier in the cost does not exceed 20%;

•      Simple ownership structure: a single beneficiary directly owns 100% of the Company;

•      High credit quality of the pharmaceutical industry. Potential for growth in demand for the organization of production;

•      Comfortable debt load. Attraction of financing from the bond market in the amount of 200 million rubles. will lead to a moderate increase in the balance sheet debt burden to 3x Net Debt/EBITDA.

We are pleased to note that the NRA agency sees growth potential for REATORG Company in a stable pharmaceutical market when implementing import substitution scenarios. The combination of a low leverage, a diversified supplier base and the Company's market experience will make it possible to effectively implement a sustainable growth strategy.

We invite you to participate in the auction!

Placement options:

•      Issue volume: 200 million rubles.

•      Maturity: 3 years

•      Duration benchmark: ~2.25 years

•      Coupon rate QRT: 16%

If you are interested in purchasing exchange-traded bonds of REATORG LLC, please contact us: