JSC AVTOVAZ Fully Placed Bond Issue Worth RUR 5 billion
OREANDA-NEWS. June 1, 2007. A full placement was made on the MICEX stock exchange of the fourth issue of documentary interest bearing bonds payable to bearer issued by JSC AVTOVAZ and worth RUR 5 billion.
There were 90 bids submitted by the investors, with the total volume reaching RUR 10.29 billion. The proposed first coupon rate ranged from 7.00% to 8.25% p.a., and most of the bids were within 7.70% to 7.90% p.a. According to the arrangers’ estimates, foreign investors’ demand reached 13% of the issue.
The first coupon rate was set by the auction at placement and amounted to 7.80% p.a. (which is RUR 38.89 per bond); the rates of the second to fourth coupons were equal to the first coupon rate, other coupon rates will be further set by the Issuer.
Effective yield to a two-year offer is 7.95% p.a., which is below the yield bottom line estimated by the arranger before the auction. Such a success was underpinned by a favourable market environment, impressive membership of the syndication, and high credit quality of JSC AVTOVAZ.
As a result of the auction, 33 bids were satisfied.
The issue was fully placed on the commencement day.
VTB acted as arranger and underwriter of AVTOVAZ bond issue, series 04.
Co-arranger of the placement was NOVIKOMBANK.
Co-underwriters of the issue were ABSOLUT BANK, BARS Commercial Bank, Gazprombank, GLOBEXBANK, Evrofinance Mosnarbank, Investment Group Kapital, Credit Suisse, MBRD, International Moscow Bank, Moskommertzbank, NOMOS-BANK, BK REGION, ROSSIYSKIY KREDIT Bank, SvyazBank and Bank SOYUZ.
National Depository Center participated as a paying agent and depository of the bonds.
The nominal volume of JSC AVTOVAZ bond issue is RUR 5 billion (State Registration Number is 4-04-00002-А of 3 May 2007). The issue matures in 2 548 days (7 years). The issue terms provide for a put option at 100% of par due on 28 May 2007. The issue will have semi-annual coupon payment. The rates of the first to fourth coupons are 7.80% p.a.; other coupon rates will be further set by the Issuer.
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