Sorainen Belarus advised Eurotorg LLC, Belarus’ largest food retailer, on a USD 350 million bond issue for a 5-year term with an annual coupon rate of 8.75% maturing on 30 October 2022.
The bonds have been issued by, and with limited recourse to, Bonitron Designated Activity Company for the sole purpose of financing a loan to Eurotorg LLC. The bond issue is the first ever Eurobond placement by a Belarusian corporate issuer. Rating agency Fitch has assigned a B-rating to Eurotorg, citing its “strong business profile, underpinned by the company’s unrivalled position in the Belarusian food retail market, limited entry threat from international chains, solid profitability and some growth opportunities arising from low penetration of modern retail in the country”.
Sorainen acted as Belarusian law counsel to Eurotorg, including Belarusian aspects of transaction structuring, transaction documentation and legal due diligence. The client was advised by a cross-disciplinary team of lawyers led by partner Kiryl Apanasevich.