OREANDA-NEWS. August 6, 2010.  The bonds were placed on MiCEX on August 3, 2010 through a book-building process. The placement was within a day and was 4 times oversubscribed.

More than 50 bids were submitted making the total book 19.7 billion rubles. Due to this demand the rate on the first coupon was lowered to 9.75% p.a. from the initial guidance of 10.00-10.50% p.a. The yield to 3-year put/call date was 9.99% p.a.

The bonds worth of 5 billion rubles have maturity of 10 years with 3-year put/call-option. The coupon is paid biannually. The rate of the first 6 coupons is set at 9.75% p.a. and subsequent coupons will be determined by the Issuer. International credit rating agency Fitch assigned the Issue its "B" rating.

The use of proceeds is to refinance the Issuer’s short-term credit portfolio.

The issue was joint lead managed by the Bank of Moscow and Raiffeisenbank. Sberbank and Bank Soyuz acted as co-arranger and co-underwriter respectively.