OREANDA-NEWS. July 15, 2013. The order book for the additional issue of Tomsk Region government bonds (government registration issue number RU34045TMS0, December 13, 2012) worth RUB 2 bln with a fixed coupon rate and debt amortisation was closed on the MICEX Stock Exchange. The bonds mature after a period of five years (1,825 days) after sale.

The bonds will have an amortised repayment structure: 20% of their nominal value will be redeemed together with the payment of the 6th coupon, 25% will be redeemed on the date of payment of the 10th coupon, 20% will be redeemed on the date of payment of the 14th coupon, 10% will be redeemed on the date of payment of the 18th coupon, and 25% will be redeemed on the date of payment of the 20th coupon. Each bond has a nominal price of RUB 1,000.

During bookbuilding, 26 investor bids were received with the coupon rate falling between 8.0% and 8.6% per annum. Investor demand amounted to over RUB 10.6 bln.

Upon review of the bids placed, the issuer decided to accept seven investor bids to a total of RUB 2 bln.

The price of the additional placement was set by the issuer at 101.65% of the nominal value of the bonds.

The technical conclusion of the purchase/sale agreements for the additional placement will take place July 16, 2013, on the MICEX.

“Thanks to the effective cooperation between the issuer and arrangers of the issue, the decision to carry out an additional issuance was made rapidly, as soon as the market situation improved. As a result, investor demand exceed the size of the additional placement by more than fivefold and demand at the cut-off price was two times larger than the volume of the placement. This enabled us to make the placement at one of the lowest rates compared to other Russian regions in 2013,” commented Aleksandr Fedenyov, Deputy Governor of the Tomsk Region and Head of the region’s Department of Finance.

The placement was organised by Sberbank CIB and Gazprombank.