OREANDA-NEWS. Public Joint Stock Company Mostotrest (hereinafter Mostotrest, the Company or the Group) on 15 July 2016 closed the order book for Mostotrest debut rouble series 07 bond issue. Investors were offered a RUB 5 billion tranche with a 10-years maturity and a 3-year put option.

The order book was opened on 15 July 2016 with an initial range for the coupon rate of 12.25-12.50% per annum. On the back of a strong investor interest during the book-building, the total demand within the initial range reached RUB17 billion, including more than RUB12 billion at the final coupon rate achieved.

The final coupon rate based on the book-building results was set at 11.50% per annum, which corresponds to 11.83% per annum YTP.

In total, more than 50 orders were submitted by a wide range of investors, including banks, investment companies, asset management companies and insurance companies.

The issue’s placement through a public subscription on Moscow Stock Exchange is scheduled for 19 July 2016.

VTB Capital acts as a Sole Lead Manager and Bookrunner of the issue. NKO ZAO NRD is the depositary of the issue.

Mostotrest CEO Vladimir Vlasov comments on the transaction:

«We are pleased with the achieved results of the bond issue. Despite the fact that this was Mostotrest's debut transaction on the local debt market, the order book was more than 3 times oversubscribed, indicating investor confidence, which we greatly appreciate. Placement of the issue with the achieved yield rate will enable the Company to optimize the structure of its debt portfolio and reduce the average cost of borrowing».

Mostotrest is a major, diversified infrastructure construction company, with an established presence in all core and related market segments, and a participant in Russia’s first public-private partnership projects. According to EMBS Group, an independent industry consultancy, in 2015 Mostotrest held a 13.9% share of the total Russian transport infrastructure construction market.