VEB Makes Secondary Offering of Currency-Denominated Bonds
OREANDA-NEWS. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ went through the offer procedure and made a secondary offering of US dollar-denominated bonds of Series 01v with a total par value of 500 million US dollars.
A coupon rate of 1.99% per annum with a new offer in one year was set with regard to the bonds. In the course of implementing the current offer Vnesheconombank bought out bonds worth 10 million US dollars.
The bid book for purchasing the bonds as part of a secondary offering was successfully closed on February 20. The total demand for bonds of Series 01v amounted to 274 million dollars exceeding the volume of the secondary offering more than 27 times. In the course of the second offering marketing Vnesheconombank was able not only to refinance the bond issue among its current bondholders but also raise significant new demand. Investors submitted bids for purchasing the bonds with a purchase price from 100.0 to 100.1% of par value.
Deputy Chairman, Board Member, Alexandr Ivanov said, “Significant demand among market players for Vnesheconombank’s currency-denominated bonds shows that they are highly marketable on the Russian market. In the course of 2012, the Bank jointly with the Currency Exchange and the Custody Department made strenuous efforts as a result of which this instrument became equally accessible to all types of investors on the domestic market. Enhancing currency-denominated bonds instrument allows the Bank to diversify sources of raising funds and will help to boost the domestic securities market.
Gazprombank and Sberbank CIB were organizers of the offer procedure and the secondary offering.
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