OREANDA-NEWS. December 27, 2011. JSOC Bashneft has placed its series BO-01 domestic bonds. The bonds, state registration number 4В02-01-00013-А dated August 29, 2011, have total nominal value of 10 billion rubles. The bonds have a two-year put option from the date placement began on the MICEX. Term to maturity for the series BO-01 bonds is three years from the date placement began.

Investors filed 70 orders for the series BO-01 domestic bonds. The total value of orders for the obligations was 20.932 billion rubles.

The original marketing range was set between 9.5 percent and 9.95 percent annually. Despite volatility in financial markets from eurozone instability, demand from investors for Bashneft’s BO-01 bonds was sufficiently high to lower the target interest range on the coupon rate twice, ending at 9.25 percent to 9.5 annually. That made it possible to set the final coupon rate closer to the bottom of the last established target: 9.35 percent annually.

Taking into account conditions in the market, the price for placement, the coupon rate set for the BO-01 domestic bonds, and demand for the bonds, Bashneft accepted 49 orders from investors at coupons of 9.35 percent annually.

"We are extremely pleased with results of our first placement of exchange obligations of the company," Bashneft President Alexander Korsik remarked. "High demand from investors for the bonds is yet another demonstration of the Bashneft’s reliability as borrower in capital markets."

Settlements of the transaction on the MICEX for the series BO-01 domestic bonds transpired on December 6, 2011. Gazprombank was agent for the bonds’ placement. Gazprombank and Sberbank were organizers of the issue. Troika Dialog was co-organizer for the bonds. METROPOL was lead co-organizer of the issue.