OREANDA-NEWS. December 17, 2012. On December 14, 2012, the order book was closed for the series BO-01 bond issue of JSC “IDGC of Center and Volga Region” worth RUB 4 bln with a term of four years.

The order book was opened on December 10, 2012, with the coupon rate ranging from 9.25%-9.50% annually.

Strong investor interest in the debut issue of JSC “IDGC of Center and Volga Region” allowed the issuer to lower the initial book-building coupon range to 9.10%-9.25%.

During bookbuilding, 36 investor bids were received with the first coupon rate falling between 8.99% and 9.40% per annum. Overall investor demand for the BO-01 bonds totalled RUB 6.9 bln. At the moment the order book was closed, the issue was oversubscribed by more than 1.5 times.

As a result of high demand, the coupon rate was set below the initial book-building level: the coupon rate for the series BO-01 bonds was set at 9.15% per annum. Taking into account the market situation, cost of the placement, coupon rate for the bonds, and investor demand, JSC “IDGC of Center and Volga Region” made the decision to accept 27 investor bids.

The technical placement of the bonds will take place on December 18 on the MICEX stock exchange.

Organisers of the placement: Sberbank CIB1 and VTB Capital.

Underwriters: Pervobank, RONIN.