JSC FGC UES Successfully Closes Order Book for Two Bond Issues
OREANDA-NEWS. October 22, 2012. JSC FGC UES has successfully closed the order book for two bond issues: its series BO-01 bonds in the amount of RUB 10 bln with a put option two and a half years after placement and series 21 bonds in the amount of RUB 10 bln with a put option four and a half years after placement.
The order book was opened on October 17 with a guideline coupon rate of 8.20% to 8.40% for the issue with a two and a half year put option and 8.80% to 9.00% for the issue with a four and a half year put option.
The market took a great deal of interest in the bond offering. The total demand for the BO-01 issue was RUB 26.6 bln and the book was oversubscribed by more than two and a half times as of closing. The series 21 bonds were oversubscribed more than two-fold and demand equalled RUB 22.7 bln.
Due to the high demand, the coupon rate for both issues was fixed at lower than the initial guideline range – for the BO-1 series bonds it was fixed at 8.10% per annum and for the series 21 bonds it was fixed at 8.75% per annum.
As a result of book building the issuer decided to fulfil twenty-two investor bids for the series BO-01 bonds and forty-three bids for the series 21 bonds.
The share of foreign investor demand equalled around 5% for bids for the BO-01 series bonds and 11% for the series 21 bonds.
The series 21 bonds with a four and a half year put option were the longest-term unsecured corporate bonds with a fixed coupon rate that have been placed in 2012.
The deal was organised by VTB Capital, Gazprombank, Renaissance Capital and Sberbank CIB1. Promsvyazbank, BC Region and TKB Capital acted as co-organisers.
The BO-01 series bonds and series 21 bonds will be placed on the MICEX Stock Exchange on October 24, 2012.
Proceeds from the issuance will be used to finance the investment programme of JSC FGC UES.
After these new bond issues, JSC FGC UES now has RUB 160 bln of bonds in circulation.
Information for editors:
Sberbank CIB
The Corporate & Investment Banking Business (Sberbank CIB) was created as part of the integration of Sberbank of Russia and Troika Dialog. Sberbank CIB’s key areas of activity are corporate financing, investment banking services, trade operations with securities, and alternative investments. Sberbank of Russia’s Corporate & Investment Banking Business provides integrated financial solutions and investment advisory services to its clients, which include major corporations, financial institutions, sovereign states and federal and sub-federal government bodies and organisations.
1On the basis of CJSC “Sberbank CIB”
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