OREANDA-NEWS. UTair Airlines, through its subsidiary UTair Finance, has launched a bond issue with a nominal value of 4.5 bln rubles. BK REGION, Rosselhozbank, Promsvyazbank, NOTA-Bank, NOMOS-BANK and Otkrytue Bank are serving as organizing banks.

The order book was closed with a coupon rate of 12% per annum for each issue. The interest rates for 2nd through 4th bond coupons BO-11, BO-12 and BO-13 are equal to the first bond coupon rate. The maturity of the bond issue is three years with an annual buy-back option and a coupon period of 91 days.

The total demand for the bonds issued reached more than 5,27 bln rubles.

UTair CFO Igor Petrov announced that a wide range of investors were interested in the bond issue. “We are satisfied with the result of the placement. Demand for the company's securities is proof of the high level trust the market bears for UTair and its development strategy,” he clarified. Mr Petrov further mentioned that the funds raised from the bonds with be used exclusively to refinance current debt.

UTair-Finance is a subsidiary of UTair Aviation. UTair Finance was founded to develop and implement investment activity for the parent company. According to the rating agency Expert, UTair-finance has an A+ rating for creditworthiness. UTair-Finance is an active player on the bond market. The total volume of bonds issued by the company in circulation have a nominal value of 14.5 bln rubles and are included on the A1 quotation list of the listing exchange.