OREANDA-NEWS. December 7, 2011. JSOC Bashneft placed its BO-01 series bonds with a nominal value of 10 billion roubles (issues identification number 4В02-01-00013-А dated August 29, 2011) with a put option 2 years after placement on the MICEX stock exchange. The maturity period of the B0-01 series bonds is 3 years after placement.

70 investor orders were placed for the BO-01 series bonds. Total demand during bookbuilding amounted to 20,932.6 million roubles.

The initial bookbuilding range on the coupon was set at 9.50 – 9.95% per annum. Despite the volatility on the financial markets caused by instability in the eurozone, the level of investor demand for Bashneft’s BO-01 series bonds allowed the price range to be lowered twice, to the level of 9.25 – 9.50% per annum. This allowed the final coupon rate to be set closer to the lower boundary of the adjusted price range: 9.35% per annum.

Given the market situation, cost of placement, coupon rate on the BO-01 series bonds and existing demand, JSOC Bashneft decided to accept 49 investor bids with an annual coupon rate of 9.35%.

Pavel Sokolov, Head of the Debt Capital Markets Department of the Investment Banking Division at Troika Dialog commented on the placement of the BO-01 series bonds as follows: “We consider that the placement of JSOC Bashneft’s bonds on the public corporate debt market was very successful. The bonds were in high demand among various categories of investors, which allowed the issuer to reduce the initial coupon rate benchmark twice. The order book was oversubscribed more than twice and was closed near to the lower boundary of the adjusted price range. Such an impressive result is proof of the high level of investor confidence in JSOC Bashneft and creates a positive foundation for Bashneft’s future placements and is also credit to the coordinated work of the issuer and the placement organisers.”