RusHydro Placed RUR 10 Billion Bond Issue
OREANDA-NEWS. April 27, 2011. JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) successfully placed bond issue of series 01 for a total amount of RUR 10 billion. The bond issues have been included in quotation list A1 of MICEX.
On April 21st, 2011, at 17:00 (Moscow time), the order book for two bonds issues with a par value of RUR 10 billion each was closed. Despite the high volatility of the Russian debt market during the bonds marketing, the offering attracted a significant investor demand - 73 investors submitted their bids for a total amount of RUR 22.6 billion. The initial marketing range of the coupon rate (8.15-8.40%) decreased to 7.90-8.15%. Following the closure of the order book the first coupon rate was set at 8.0%. The second through tenth coupons have the same rate.
RusHydro's offering was priced at comparable level to other first-tier issuers with investment-grade ratings (Gazprom Neft). The spread to OFZ yield curve is 20 basis points lower than 5-year ruble-denominated Eurobonds, placed by RusHydro in October 2010.
The bonds are subject to put option in 5 years. Gazprombank acts as the underwriter for this issue; lead managers are Gazprombank, Raiffeisen Bank and VTB Capital; lead co-managers are GlobexBank, IFC Metropol, Svyaz-Bank.
The placement was conducted via open subscription by collecting bids from investors at a fixed price and coupon rate for the first coupon period. The placement arrangements were approved by the Board of Directors July 29th, 2010.
The bond issues were registered by
RusHydro's 2011-2015 business plan, as adopted by a resolution of the Company's Board of Directors March 18th, 2011, provides for increasing long-term borrowings in 2011 up to RUR 15 billion. Proceeds will be used to finance the Company's investments as well as to partially refinance the bond issue of JSC Management Company HydroOGK, which matures in June 2011.
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