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23% on Russian energy. Fresh bonds: RusHydro on placement
This is the moment when the highest-rated companies offer 23% potential yield for floating shares. So RusHydro couldn't resist the temptation to borrow money from investors. They want 20 billion rubles. Let's see what's included in the new version.
What about newly placed shares such as GTLK, Sovcombank, Etalon, Delimobil, Monopoly, Rolf, T-Finance, Rusal, Kamaz? More information will be published in the future, so don't miss it.
Issue volume: 20 billion rubles. 2 years. Coupon code: KS+2%. No offers or discounts. Coupons are provided monthly. AAA rating from ACRA (September 2024) and Expert RA (December 2023).
RusHydro is one of the largest energy companies in Russia, primarily engaged in the production of electricity using hydroelectric power plants. Founded in 2004, the company manages a number of hydroelectric power plants and actively develops alternative energy sources. RusHydro ensures sustainable energy supply, supports environmental protection projects and promotes the development of 31 regions where its enterprises operate. Rosimushchestvo owns 62%. • Payment: 12 times a year
Why RusHydro? Do they have much energy?
It is large and it is nationally owned. The company’s balance sheet is strong, its assets are diversified, and its many power plants generate cash as well as cash. Hydra’s focus on renewable energy, its government support, and its strategic importance to the Russian energy system are not just advantages, they are powerful advantages.
In the 2023 report, the company recorded a 22% increase in sales compared to the previous year, reaching approximately 510 billion rubles. Net profit was approximately 32 billion rubles, which is higher than the 2022 level (19 billion). EBITDA in 2023 is 131.5 billion won (+44% y/y), net debt is 324 billion won (+75% y/y), the net debt/EBITDA ratio is 2.5 (versus 2 in 2022).
In the first half of 2024, sales were 283 billion won (+8.5% y/y), net profit was halved to 23.7 billion won, EBITDA was 75.3 billion won, and net debt was 365.8 billion won. Due to the significant amount of debt, there is still profit and it is decreasing, the debt burden is already significant, but this is not some kind of investment, but one of the largest energy companies.
The interest coverage ratio (FFO before interest payments minus interest payments) was 4.4 times in 2023 and is expected to increase to about 2.5 times over the next two years due to increased debt and higher base interest rates. Should we raise electricity rates? What can you do?
Hydra в настоящее время выпустила облигации на сумму 170 миллиардов долларов, и новый 20-ярдовый плавающий выпуск с ключевой премией до 2% выглядит хорошо в нынешних условиях. Это не здорово, но и не ужасно. Доступно только тем, кто не сдал экзамен. Возможно, купон со временем снизится до КС+1,6-1,7. Я участвую.
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