Gunvor to buy back its bonds early

Swiss trader Gunvor (88% belong to Torbjorn Tornqvist) has sent an offer for early redemption to holders of bonds, the maturity of which will expire in 2018, the company’s message on the Singapore Exchange says. The offer was caused by the sale of assets in Russia, a representative of Gunvor explained. Under the agreement for the placement of bonds we have a year to submit such proposal to investors, but Gunvor decided to do it now, because the company has good liquidity and the ability to borrow more cheaply, he said. The transaction on sale of 74% of Ust-Luga Oil, Sandmark Operations Ltd. and Ust-Luga Logistics LLC. Has been completed, it brought the company approximately $1.7 billion of the net profit, Gunvor explains in its message.

The trader placed five-year bonds for $500 million in 2013, the coupon rate was 5.9%. The prospectus for the placement says that the money was attracted in the "general corporate purposes". Earlier, Gunvor has bought the securities for $154 million.