Russian Agricultural Bank Placed Exchange Bonds for RUB 10 bn
OREANDA-NEWS. February 10, 2012. Russian Agricultural Bank (RusAg) has successfully placed exchange bonds series БО-02 and БО-03 for the total amount of RUB 10 billion, reported the press-centre of RusAg.
The order book for exchange bonds series БО-02 for the total amount of RUB 5 billion was opened on February 1, 2012, offering coupon rate range of 8.25%-8.50% p.a. As a result of the considerable investors’ demand, the Bank raised the volume of placement to RUB 10 billion by issuing exchange bonds series БО-03 under the same terms. In the course of the marketing campaign, initial annual coupon rate range was narrowed to 8.20% — 8.35%. The final interest rate of exchange bonds was set by the Issuer at 8.20% p.a.
The issue attracted strong interest from Russian and international banks, as well as large investment and asset-management companies. The highest demand was recorded from Russian institutional investors and foreign-owned banks. "We are satisfied with the results of new bonds issues amid the high competition from other top-tier issuers. The doubled volume of placement and the final coupon rate is the acknowledgement of RusAg`s status as an extremely reliable issuer", said Victoria Kirina, Deputy Chairman of the Management Board at Russian Agricultural Bank.
Maturity of the exchange bonds is 3 years, with a put option in 1.5 year.
ZAO VTB Capital acted as a book-runner.
Co-runners are IC BCS, Veles Capital, GLOBEXBANK, RON Invest, IC URSA-Finance, UniCredit Bank.
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