MTS Issues Ruble-Denominated Bonds Totaling RUB 25 bln
OREANDA-NEWS. November 18, 2010. Mobile TeleSystems (MTS) has completed the placement of Series 07 and Series 08 ruble-denominated bonds totaling RUB 25 bln on November 16, 2010. The bonds will be listed in the "A1" quotation list on the Moscow Interbank Currency Exchange (MICEX).
The Series 07 bond in the amount of RUB 10 bln was placed with a semi-annual coupon rate of 8.70% and а 2017 maturity. The Series 08 bond in the amount of RUB 15 bln carries a semi-annual coupon rate of 8.15% with а 2020 maturity and a five year put option.
The initial guidance on the five-year bond was set at 8.30-8.60%, on seven-year bond – 8.80-9.15%. In spite of volatile market conditions, the placement witnessed high demand with around 100 orders totaling more than RUB 41 bln received.
On the back of this demand the initial marketing ranges were moved downward to 8.15-8.30% and to 8.70-8.80% and the order books were closed at the lower ends of the new ranges – at 8.15% and 8.70% respectively. Both issues had a wide distribution of more than 70 investors.
This was a pioneering placement. The coupon rate on the five-year bond was the lowest when compared to the peers and to the issuers with the similar rating; and previously only quasi-sovereign issuers had managed to place seven year bonds.
Lead Arrangers of the bonds were VTB Capital, Gazprombank, the Bank of Moscow and Sberbank.
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