MegaFon Finance Closed Book for Bonds of Series 05
OREANDA-NEWS. October 9, 2012. MegaFon Finance, subsidiary of MegaFon, closed the book for the Bonds of series 05that amounted to 10 BRUR. The Bonds provide for the Issuer’s offer of a put option for the bonds in 2 years from the offering date. The maturity is 10 years.
The transaction enjoyed a great interest of the investors community. As a result of high demand the bonds were oversubscribed over 3-fold, which allowed to reduce the marketing range of the coupon rate down to 8.00 — 8.10% p.a. from the initially estimated range of 8.20–8.45% p.a.
Within the final range more than 50 investors submitted their requests for the bonds. The final pricing determined the coupon rate of 8.05% p.a. for the bonds of series 05.
Final settlements for the placed bonds will take place at MICEX on October 11, 2012.
The issue is arranged by VTB Capital and Sberbank CIB as the book-runners, with GLOBEXBANK as co-arranger, and RON-Invest LLC as the underwriter.
“I believe that this issue of MegaFon’s bonds, which is the first since many years, turned out to be more than successful. Our offer has been accepted by the market quite positively, which is confirmed by more than triple oversubscription. Such significant interest to our securities testifies to the high level of investors’ trust to MegaFon. The proceeds will be used for repayment of the current short-term debt to improve our portfolio structure due to longer average maturity and lower rates”, said Ivan Tavrin, Chief Executive Officer of MegaFon.
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