26 January 2023

LECAP provides legal support for the debut bonds issue of the Russian Environmental Operator PLC

LCPIS was appointed as the representative of the bondholders for the deal

LECAP has provided legal support for the debut issue of bonds by Russian Environmental Operator PLC. The bondholders were represented by LCPIS.

The 10-year bonds for the amount of 1.6 billion rubles were placed at the Moscow Stock Exchange on 25 January 2023. Funds raised from the issue of the bonds will be used to provide a secured loan to finance the construction of a waste treatment and disposal complex in the Tula Region. A pledge over the secured loan was made in favor of the bondholders. The coupon rate was subsidized by the Ministry of Finance and the subsidy funds were pledged in relation to the bonds, too.

The series 01 REO PLC bonds have been ranked ruA+ by the Expert RA rating agency, which demonstrates a high credit score. The bonds have not been marked as "green" or "adaptation" ones, however, their objective – to ensure waste management – plays an important role in sustainable development.

LCPIS is an independent competent bondholder representative (Russian analogue of trustee) representing bondholders in 200+ bond issues for a total amount of more than 2 trillion rubles. For six consecutive years (2017–2022), LCPIS took the first place in the bondholder representative annual ranking conducted by Cbonds, the leading Russian financial information agency. In 2022, LCPIS won in the newly introduced Best Bondholder Representative nomination by Cbonds Awards.