TransCreditBank Underwrote 5th Bond Issue of JSC North-West Telecom
OREANDA-NEWS. On 02 June 2008 was announced, that JSC North-West Telecom placed its 5th bond issue by open subscription at MICEX. The deal was arranged by Svyaz-Bank and Raiffeisen Bank. TransCreditBank participated in the syndication as an underwriter.
The issue consists of 3,000,000,000 securities of RUR1(one) face value each. The issue matures in 5 years.
The bond carries quarterly coupons. The coupon rate is equal tot the sum of 3-months MosPrime rate (6.28% p.a. as of 25.05.08) set on the last day of each coupon period and 212 b.p. premium (2.12% p.a.) set at the auction. Terms and conditions of the issue provide for the issuer’s right to redeem securities before maturity on each coupon payment date starting from the 8th coupon at 100.25% of the face value. All bondholders may to put their holdings for repayment in 2 years at face value.
The issue was fully placed at the tender. Investors made 90 bids for the total amount of RUR9.5bn. The size of premium over MosPrime rate proposed by investors varies from 197 to 362 b.p. The deal was 3.2 times oversubscribed.
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