Today we will look at two corporate debt securities as investment ideas for this week: Terraform Global Operating, LLC and Polyus Gold International Limited
In the segment of issues with an interesting yield, we will focus on the only Eurobond Terraform Global Operating, LLC with a maturity in 2026. Based in the US, Terraform Global Operating, LLC generates electricity from renewable sources, in particular from solar and wind energy, selling to consumers around the world. In March 2017, the issuer for $ 954 million was acquired by Brookfield Asset Management Inc. - a global corporation engaged in asset management in real estate, infrastructure and renewable energy sources. Brookfield Asset Management Inc. Current Market Capitalization is 48 billion dollars.
Issue in the amount of $ 400 million was placed in February 2018. There are 3 call options for the issue, the profitability of the nearest one (01.03.2021 at a price of 103.063%) is 7.7%
Against the background of gold, which has risen to a 5-year high on signals of the Federal Reserve System readiness to mitigate policy, we decided to pay attention to eurobonds of gold mining companies, in particular, to positioning the Polyus curve (Ba1 / BB / BB) relative to its counterparts. In general, in our opinion, domestic producer loans look quite competitive against Eurobonds with BB + / BB ratings. For example, the issue of Polyus with redemption in February 2023 is now trading with a 4% yield.
Joint Managing Director
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