OREANDA-NEWS. July 25, 2013. On the MICEX stock exchange bids were received for the first coupon rate for an issue of the sovereign bonds of Yaroslavl Region with a notional value of RUB 5 bln and fixed coupon rate (government registration number RU34012YAR0 from July 12, 2013). The principal will be amortized. The bonds mature after a period of five years (1,820 days) from the date of issue.   

The bonds will have an amortised repayment structure: 10% of their nominal value will be redeemed with the payment of the 11th coupon, 15% on the date of payment of the 12th coupon, 15% on the date of payment of the 13th coupon, 10% – on the date of payment of the 15th coupon, 10% – on the date of payment of the 16th  coupon, 10% – on the date of payment of the 17th coupon, 15% – on the date of payment of the 19th coupon, 15% – on the date of payment of the 20th coupon. Each bond has a nominal price of RUB 1,000.

During bookbuilding, seventy-three investor bids were received for the bonds with the first coupon rate falling between 8.00% and 8.65% annually. The issuer made the decision to set the first coupon at 8.35% annually, which corresponds to a redemption yield of 8.24% annually. Thirty-four investor bids were accepted for a total of RUB 5 bln.

“The sale of the bonds of Yaroslavl Region traditionally attracts the interest of a wide range of investors due to the consistent financial policies pursued by the regional administration,” commented DCM Director at Sberbank CIB Alexey Bezrukavnikov.  

Organizer: Sberbank CIB

Underwriter: KIT Finance Broker

Co-underwriter: Bank ZENIT