Russian largest oil pumps producer goes public

Vladislav Vorotnikov writes:

Russia Borets Company which specializes in oil machinery has posted a 5-year Eurobonds for US$420 million at 7.625% per annum, thus becoming one of the first Russian oil pump producers that went public.

According to the report on September 12-18 the company held meeting with investors from Switzerland, the UK and the USA. The organizers of the offering are Deutsche Bank, Morgan Stanley and Russian bank Sberbank.

As noted in the analytical materials the funds raised from the placement of Eurobonds the issuer intends spend to redeem of 38.5 % of its own shares from Weatherford in the amount of US$370 million, as well as to pay off the current debts to the IFC and the EBRD. Redemption of shares is planning to be held jointly with the Tangent Fund, which will provide for the purpose of US$30 million.

Company Borets is one of the world's biggest oil engineering companies specializing in the development, production, sales and service of equipment for oil extraction. Its main products are electronic submersible pump system and screw-type pumps.