Russia: Moscow Efes Brewery delays 6 billion rouble bond sale to next year because of poor market climate

Moscow Efes Brewery (MEB), the Russian unit of Efes Breweries International, has delayed a planned 6 billion rouble ($246.8 million) bond issue to 2008, an official at the issue organiser said, according to Reuters, November 23.

"We are putting off the placement to next year because of the poor market climate," the official at Troika Dialog, which is organising the issue with Citibank, said.

The debut three-year bond had been scheduled to be placed in the second half of November. The organisers had forecast the first annual coupon rate in the range of 9.5-10.0 percent.

The company had planned to use up to 75 percent of proceeds from the issue to finance the acquisition of the other Russian businesses owned by Efes Breweries International (EBI).

EBI said this month Moscow Efes Brewery was to buy 92.9 percent of Krasny Vostok Brewing Group for $368 million in a move to consolidate EBI's Russian business under MEB.

The remaining proceeds would be used to refinance existing debt. (Reporting by Yelena Fabrichnaya; Writing by Maria Kiselyova, Editing by Erica Billingham)

23 November, 2007