Today we will look at two corporate debt securities as investment ideas for this week: L Brands, Inc. and Novolipetsk Steel (NMLK).
Among foreign papers with a higher yield, we will pay attention to the Eurobond of American clothing retailer L Brands, Inc. maturing in 2028. Founded in 1963. L Brands, Inc. owns about 3,000 stores throughout the US, as well as in the UK, Canada and the PRC, offering a wide range of products, including women's clothing, underwear, cosmetics and accessories. The company's brand line-up includes the world-famous brand Victoria's Secret. L Brands, Inc. employs 25.5 thousand people.
As of May 4, 19, the issuer's revenue and EBITDA for the last 12 months amounted to $ 13.2 and $ 1.8 billion, respectively, net profit was fixed at $ 0.6 billion. Shares L Brands, Inc. traded on the NYSE with a current market capitalization of $ 6.7 billion.
NLMK last week expanded its line of dollar Eurobonds, placing a 7-year issue at 4.7% per annum. The volume of placement amounted to $ 500 million. The placement was successful: the demand for securities reached $ 1.7 billion, the initial benchmark yield was 5-5.125%.
The duration of the Russian Eurobond market is on average low, and the emergence of a new 7-year issue should be of interest to investors. This interest becomes even more pronounced if we take into account the increasingly apparent trend of lower interest rates.
Joint Managing Director
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