08.09.2014

HMS Group redeemed Rub 900 mn bonds

Moscow, Russia – HMS Group (LSE: HMSG), the leading pump and compressor manufacturer as well as a provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS, announces today that is has made a partial redemption of its Ruble bonds for Rub 900 mn excluding accumulated coupon interest. 

The company purchased 900,000 bonds at 100% par value. Bonds buy-back was financed by an unsecured non-revolving credit line up to 3 years, lent by Raiffeisenbank at the end of this August.  The bank also acted as a purchase agent.

Rub 3 bn bonds, with a 10.75% coupon rate, were issued in February 2012 and mature in February 2015.

Mr. Kirill Molchanov, the co-founder and CFO of HMS Group, commented:

“Credit portfolio management is one of HMS’ top-priority tasks.  We use various financial instruments, which allow securing a more comfortable debt repayment schedule and prolongation of our credit portfolio along with borrowing costs optimization. Apart from the above Rub 900 mn loan, we obtained two unsecured 3-year credits from Raiffeisenbank and UniCredit Bank - Rub 981 mn in May 2014 and Rub 750 mn in June 2014, correspondingly - which were also utilized for refinancing of our current bank indebtedness”.

HMS Group’s current debt repayment schedule

Rub mn

2014F

2015F

2016F

2017F

2018F

2019F

Debt for repayment

 698

2,340

6,582

2,192

2,141

311

Undrawn credit lines with availability more than 12 months

1,469

 

 

 

 

 

  Sources: Company data as of 4 September, 2014

HMS Group is the leading pump and compressor manufacturer, as well as provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. HMS Group’s products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia’s core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.