Air-Finance Issues Bonds Totaling 1.5 Billion Rubles
OREANDA-NEWS. October 21, 2011. UTair Aviation affiliate UTair-Finance has issued bonds totaling 1.5 billion rubles. The loan was led by BK Region.
The application book was closed with a coupon level at 9.5% per annum, with the interest rate for the second and all subsequent exchange bond coupons set equal to the interest rate of the first coupon.
Maturity of the bond issue was set at 5 years without interim offer, with the coupon period at 91 days. The bond issue was included on the MICEX on B Quotation List.
The total volume of applications to purchase securities with a yearly coupon rate ranging from 9.20% to 10.00% exceeded 3.2 bln rubles.
UTair Aviation was pleased with the results of the placement, considering it very successful as evidenced by the interest of a large number of investors and the closing of on both issuances on the most favorable terms for the airline. The success of the bond issues were driven by the carrier’s dynamic development and impeccable credit history. Funds from the bond issue will be used to refinance current debt.
UTair-Finance is an affiliate of UTair Aviation tasked with developing and managing the airline’s investment program. UTair Aviation is the underwriter for loans.
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