OREANDA-NEWS. January 13, 2011. UTair Finance Ltd., the subsidiary of UTair Aviation made BO-03 series bond placement with a par value of RUB 1.5 billion.

The bond placement was made on December 23, 2010 at MICEX by book building public subscription. UTair Aviation acted as the underwriter for the loans.

The general demand for the bonds constituted RUB 4.6 billion and exceeded the forecasted demand more than 3 times. The applications for bonds with coupon rate between 9.25 % and 9.6 % per annum have been received from 19 investors, including from commercial banks, as well as investment and management companies.

Due to the high demand from the investors, the bid book closed at the coupon rate of 9.45 % per annum. The interest rate for the second and all subsequent bond coupons was fixed at the same interest rate as for the first coupon. The bond maturity was 3 years without an interim offer; coupon period - 91 days.

The airline considers the bond placement results as successful, which was demonstrated by a vast interest to the loan from a large number of investors and bid book closing on the most suitable terms for the company, all of which was possible due to its dynamic development and flawless credit history.

Once the bonds are in circulation, it is intended that they will be included in MICEX A1 quotation list.

LLC  “BK Region” acted as the loan arranger, AKB “MBRR” (JSC ) and JSC  “Petrokommerz Bank” acted as joint arrangers. The funds from bond placement will be used to refinance the current loan indebtedness of the airline.