OREANDA-NEWS. July 01, 2011. RusFinance Bank closed the order book for commercial paper series BO-01 with total nominal value of R4.0 bln and maturity two years from the date of sale commencement.

Over the course of book building, investors submitted 40 bids with coupon rates ranging between 7.10% and 7.25% annually. Overall demand during book building amounted to R10 bln.

After completing book building, LLC Rusfinance Bank set the coupon rate at 7,15% annually. Given the market situation, cost of placement, coupon rates on the bonds and elicited demand levels, LLC Rusfinance Bank has decided to satisfy 30 investor bids. Proceeds from the sale will be used to finance core operations – issuing consumer loans. The bank also plans further development of its core products: auto and consumer lending at sales points, untargeted loans and credit cards.

Arnaud Leclair, LLC Rusfinance Bank Chairman of the Management Board, commenting on the first issue in 2011, said, "Building on the experience of the Bank’s two successful bond placements in September and November 2010, we’re delighted by the continued upbeat market sentiment and considerable investor demand for this issue, evidencing a strong belief in Rusfinance Bank’s growth prospects going forward."

Settlements under the deal will take place upon placement of the commercial paper series BO-01 on the MICEX on July 4, 2011.