Russian petrochemical major Sibur opened the order book on August 28 for its new five-year US dollar-denominated bonds with a fixed monthly coupon and a volume of up to $400mn, according to Cbonds.

The latest bond issue offers a yield ceiling of 7.4%, which Renaissance Capital estimates to be more than a 100-basis point premium above fair market value.

As a reminder, in 2024 the company announced its intention to hold an initial public offering (IPO). The market has been waiting for the placement of Sibur for more than 15 years, with an IPO on the agenda since 2007. The last round of IPO preparations in 2021 could have seen the company valued at upwards of $22bn.

Sibur posted 8% year-on-year growth in IFRS revenues to RUB1.17 trillion, with EBITDA down by 2% y/y to RUB477bn and net income up by 16% y/y to RUB186bn ($2.2bn).

In 2024 the revenue growth was driven by domestic demand for polymers, which accounted for 71% of the total sales. Earnings slipped owing to outpacing growth in raw material prices (+24% y/y). 

As far as the IPO is concerned, the conditions for the offering have improved markedly since December, although the company will probably want to wait for the final developments in Russia-West relations first, Renaissance Capital commented in the beginning of 2025.

As a reminder, in 2021 Sibur closed a deal to take over 100% of its Tatarstan-based rival TAIF. The combined business will be one of the five biggest producers of polyolefin and rubber products in the world.

After the TAIF deal, oligarchs Leonid Mikhelson (second in the Forbes Russia ranking with an estimated fortune of $27.4bn) and Gennady Timchenko (sixth with $23.4bn) held 30.6% and 14.45% in Sibur respectively, followed by China’s Sinopec and Silk Road Fund (8.5% each), SOGAZ (10.625%), TAIF shareholders (15%) and current and former top management of Sibur (12.325%). 

Reports since 2024 have suggested that Sibur is actively redirecting the supply volumes of main products from Europe to other markets, even if the company does not rule out its return to the European market in some segments, such as liquefied petroleum gas (LPG).