TAS Dneprovagonmash LLC (TAS DVM, Kamianske, Dnipro region), controlled by Serhiy Tigipko’s TAS Financial and Industrial Group, registered a $1 million corporate bond issue with the National Securities and Stock Market Commission (NSSMC) on August 7.
According to the prospectus, the company is issuing 1,000 bonds with a face value of $1,000. The bonds will have a five-year maturity, from August 8, 2024, to August 26, 2029, with quarterly coupon payments.
The interest rate in the first year of circulation is set at 6% per annum, in other years of circulation it will be set by the decision of the company’s management, taking into account market conditions, but it cannot be lower than 1% and higher than 15% per annum.
Early redemption of the bonds at the request of their holders is not provided, as well as early redemption of the entire issue by the company on its own initiative.
The maturity of the bonds is from August 27 to September 29, 2029.
As reported, the decision to place registered interest-bearing ordinary corporate bonds of the E series was made by the company’s supervisory board on May 28.
TAScombank will act as the underwriter.
The raised financial resources are planned to be used for technical re-equipment and capacity development to implement the project of the company’s entry into the European market.
As reported, in July 2020, Dneprovagonmash placed five-year bonds of series A-D totaling UAH 200 million (UAH 50 million of each series) as part of the decision to issue corporate bonds by TAS Group companies for a total of UAH 1 billion 885 million and EUR 3 million.
At the beginning of 2023, TAS Group became a strategic investor in the TransAnt GmbH railcar building joint venture of Austrian Voestalpine and ÖBB Rail Cargo with a 40% stake, and in the spring of this year it became the majority owner of TransAnt, increasing its stake to 61%.
As part of the project, the plant initially shipped lightweight modular freight cars (MultiBOX) for use on EU railways, and then platform cars.
Last week, the company announced on its website that 1500 different railcars had been accepted by an international company,
“The project is aimed at restoring logistics supply chains and ensuring the sustainability of exports of Ukrainian products (agro-, metallurgical, chemical, processing, etc.) and is designed for more than one year of operation,” the statement said.
First of all, grain carriers with a body volume of 126 cubic meters and a tare weight of 22.5 tons will be produced, which allows transporting 71.5 tons of grain per car.
It is noted that currently all components of the car are manufactured in Ukraine, while until 2022, the components were imported. In particular, TAS Dneprovagonmash has mastered the production and certified the absorbing apparatus of one class, and certification and testing of two more classes is in the final stages.
The company did not provide Interfax-Ukraine with information on the duration of the project or the buyer, noting that details would be announced later.
This year, the company plans to invest UAH 100.2 million in the development of the European direction (purchase of equipment).
“TAS Dneprovagonmash ended January-June 2024 with a net profit of UAH 18.85 million, which is three times less than in the same period of 2023, with revenue up 37.8% to UAH 796.47 million.
The company produced 317 freight cars in the first half of the year.
