Challenge
Ledovo Group is one of Russia's largest producers of preserves, frozen seafood, mushrooms, and prepared foods with vegetables and rice. In 2004, the company approved a five-year development strategy that includes entering the bond market and bringing in a strategic investor. Traditionally, Ledovo's market was closed, with investors steering clear, as they knew little of the state of the market or its prospects for growth. Polylog's challenge was to attract investor attention to Ledovo's projects.
Solution
Says Ledovo president Nadezhda Kopytina: "Systematic PR activity and creative approaches to marketing problems allowed us to achieve strong results at reasonable cost."Measures included:
- Regular work with key financial and business publications (Kommersant, Prime-TASS, RBC, Interfax, AK&M, Kompaniya, and others), including breakfasts for the press and interviews with Nadezhda Kopytina
- Providing data to financial analysts on the market and Ledovo's investment projects
- Creating an Investor Information section for Ledovo's website (including annual and quarterly reports, news reports, press releases and other information)
- Presentation of Ledovo's investment projects to portfolio investors and venture capital funds, including preparing all the necessary materials
- Informational support for Ledovo's two bond issues to increase the number of mentions in the media before the placement
- Organizing press conferences on the days of the issues for investors and industry media, including Cbonds, Finance, Interfax, Prime-TASS, RBC, Finmarket, SKRIN, and others
Results
Ledovo's bond issues were fully subscribed, with coupon interest for both issues 2%-3% lower than the average market rates on the day of the offering.
In July 2004, Ledovo began receiving bids from portfolio investors (Alfa Capital Partners, Prosperity Capital Management, Norum, Troika Dialogue Asset Management and others), and in 2005 began working on a deal with one of the funds.