OREANDA-NEWS. June 10, 2011. Sviaz-Bank participated in the flotation of three-year tradable Series BO-2 bonds totaling 5billion rubles in par value offered on the exchange floor by Koks OJSC (identification number 4B02-02-10799-F of December 17, 2009), reported the press-centre of Sviaz-Bank.      

The bonds were offered by public subscription through a book building process on the floor of the MICEX Stock Exchange CJSC.

The starting coupon interest rate ranged from 8.7% to 9% per annum. Investors made 56 bids for tradable bonds during the book building process at the lowest boundary of the stated coupon interest range.

Koks OJSC ceased accepting bids for Series BO-2 bonds. The total demand for the company’s bonds capped 11 billion rubles, with an over-subscription more than twice the number of bonds available. For this reason, the interest payable on the first coupon of the bonds was fixed at 8.7% per annum. The issuer fixed interest on the remaining coupons at the rate payable on the first coupon.

Sviaz-Bank, VTB Capital CJSC, Raiffeisenbank CJSC, and Sberbank OJSC were the managing underwriters of the issue. Raiffeisenbank CJSC acted as the agent bank for bond allotment.

According to the offer documents, the bond issue has a par value of 5 billion rubles and a maturity of three years. The Series BO-2 tradable bonds have six half-year coupons each. No buyback options have been offered on bonds of this issue before maturity.