First Coupon Rate Set for Series 34045 Tomsk Region Government Bonds
OREANDA-NEWS. December 21, 2012. On December 20 2012, a tender was held on the MICEX stock exchange in order to determine the first coupon rate of the Series 34045 Tomsk Region Government Bonds. The bonds (state registration issue number RU34045TMS0 dated December 13, 2012) have a nominal value of RUB 5 bln, a fixed coupon rate and the principal will be amortised. The bonds mature after a period of five years (1,825 days) from the date of issue.
The bonds will have an amortised repayment structure: 20% of their nominal value will be redeemed together with the payment of the sixth and fourteenth coupons, the issuer will redeem 25% on the date of payment of the tenth and twentieth coupons, and 10% will be redeemed on the date of payment of the eighteenth coupon. Each bond has a nominal price of RUB 1,000.
During bookbuilding, 91 investor bids were received with the first coupon rate falling between 8.41% and 9.20% per annum. Investor demand amounted to over RUB 7.9 bln. The issuer established the first coupon rate at 8.60% per annum, which corresponds to a redemption yield of 8.88% per annum, and decided to accept 38 investor bids for a total of RUB 3 bln.
“The placement of Tomsk Region bonds is one of the year’s most successful Russian region bonds placements in terms of its low redemption yield of 8.88% per annum. The good outcome is proof of the high amount of investor interest, favourable market conditions and effective coordination between the Issuer and Organisers,” commented Alexey Bezrukavnikov, DCM Vice-President at Sberbank CIB1.
Organisers of the placement: Sberbank CIB and Gazprombank.
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