BoD of Bank Electronika Discusses Changes to Charter and Interest Rate
OREANDA-NEWS. December 17, 2007. The Board of Directors of Bank Electronika discussed changes to the institution’s charter and the interest rate on the first four coupons of the Bank’s second bonded debt. The need for changes in the charter arose in connection with the opening of a Volgorad branch.
In keeping with a decision of the Board of Directors on November 14, 2007, the date for placement of the obligations was carried over from November 19 to December 12, 2007. Placement of the 500-million-ruble obligations has been completed. The board fixed the rate of interest on the first coupon of the series 02 obligations of the Bank at 13 percent annually. Per the decision on debt issuance, the rate of interest on the second, third, and fourth coupons is equal to the first.
Igor Potapov, Bank Electronika’s Treasurer, commented on placement of the obligations: Bank Electronika Series 02 bonds were placed on the MICEX on December 12, 2007. The bonds have total nominal value of 500 million rubles. Bank Electronika and bank VTB 24 were organizer and co-organizer of the issue, respectively. The entire volume of borrowing was placed during the auction; eleven applications were received with proposals ranging from 12.5 percent to 13.40 percent annually. Based on results of the auction, the issuer adopted a decision establishing the interest rate on the first coupon at 13 percent annually.
In accordance with issuing documents: the size of the placement was 500 million rubles; the term to maturity is three years; an offering will be made in one year; coupon payments will occur quarterly; the interest rates on coupons two through four will equal that of the first; interest on the fifth through the twelfth coupons will be fixed by the issuer.
Changes to the charter of Bank Electronika to accommodate opening of the Volgograd branch were also discussed during the meeting. The Board of Directors adopted a resolution on changes to the charter following confirmation from the Bank of Russia that the branch had been entered into the registry of credit organizations.
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