In the preliminary version of the prospectus of Eurobonds TMK (TMK), a copy of which is available RBC, says that any future political reforms and instability may lead to uncertainty among investors and deterioration of the General economic situation. Billionaire Dmitry Pumpyansky does not preclude capital flight and a slowdown of investment and business activity.
In the wording of the relevant sections of Eurobond prospectuses the company will typically attempt to provide a list of possible risks for investors. To describe the possible or hypothetical political and economic risks in the jurisdictions in which the borrower operates, standard legal practice, said the representative of TMK to a request to RBC. Therefore, TMK pointed out all potential risks, the company said.
the document also contains a warning that the lack of consensus between the President, Prime Minister, the government, the Parliament and powerful economic groups could lead to political instability and deteriorating investment climate. As RBC notes, the point about possible differences in the higher echelons of power in the prospectus of Eurobonds TMK from 2013 was not.
Putin on January 15 in the message to the Federal Assembly proposed amendments to the Constitution. They involve some restriction of presidential powers and the extension of the powers of the state Duma and the Federation Council. In addition, the state Council will be enshrined in the Constitution as the body responsible for the definition of the basic directions internal and foreign policy.
TMK is the largest steel pipe manufacturer in Russia and one of the top three global leaders in the pipe business since 2009, ranking first in the world for shipments of tubular products. Total pipe shipments in 2018 amounted to 4.01 million tons.
TMK unites the enterprises located in Russia, Romania and Kazakhstan and has the production capacity of the entire spectrum of steel pipes. The largest share in the sales structure of the Company is a threaded oil and gas pipes (OCTG).
this week the rating Agency Standard & Poor's (S&P) raised long-term ratings of TMK in local currency and foreign currency from "B+" to "BB-" with "Stable" Outlook. Earlier, rating Agency Moody's Investors Service (Moody's) changed the Outlook on credit ratings of TMK from "Stable" to "Positive" and confirmed the corporate family rating of B1.
According to rating agencies, the main reason for these decisions was the closure of TMK of the sale of 100% of shares of IPSCO Tubulars Inc. and the expectation that a significant portion of the funds received from the transaction, the company will reduce the debt burden. The upgraded ratings include the expectation that the company will be able to reduce leverage and will continue to maintain liquidity at an adequate level, showing good operational and financial performance.
