Today we will look at two corporate debt securities as investment ideas for this week: Arconic Inc. and GTLKOA 25
Let us turn our attention to the Eurobonds of Arconic Inc. with maturity in 2037, the Issuer specializes in light metals: Arconic products are used in aerospace, automotive, oil and gas and defense industries around the world, as well as in the production of building structures and consumer electronics. The company was established in 2016 by splitting Alcoa Inc. into two publicly traded companies. The headquarters is located in Pittsburgh (Pennsylvania, USA), the company employs 43 thousand people. The issuer's shares are traded on the NYSE with a current market capitalization of $ 11 billion. Included in the S&P 500 index.
The senior unsecured issue with maturity in February 2037 in the amount of $ 625 million. Options for the revision of the coupon (5.95% per annum) are not provided. Minimum lot for the release is $ 1,000.
Following the improvement of Russia's sovereign rating, Fitch increased the ratings of domestic state-owned banks and corporations. In particular, the long-term rating of State Transport Leasing Company and its subsidiaries GTLK Europe DAC and GTLK Europe Capital DAC was upgraded from BB to BB +. Note that the Moody’s agency maintains a rating one level lower for the obligations of these companies than Fitch - Ba2.
The issuer's maturity in 2025 is one of the few senior Russian corporate securities for which a yield of about 5% can still be recorded. Note that GTLKOA 25 looks competitive and against the background of international securities of comparable credit quality.
Joint Managing Director
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