OREANDA-NEWS. August 06, 2013. The book was closed for an issue of government bonds of the Belgorod Region in the form of certificated securities with a fixed coupon. The principal will be amortized and the bonds are worth a total of RUB 3.5 bln (government registration number RU35007BEL0). The bonds mature after a period of 2,548 days from the date of issue. 

The guideline for the first coupon ranged from 8.55-8.90% per annum, which corresponds to a yield of 8.83-9.20% per annum. More than 30 market participants demonstrated an interest in the issue and total demand during the guideline period equalled RUB 10 bln.

During book building the organisers changed the coupon guidelines two times and as a result, the final guideline for the first coupon was set at 8.30-8.45% per annum, which corresponds to a yield of 8.56-8.72% per annum.

Upon review of the bids placed, the issuer made the decision to set the first coupon for the Belgorod Region government bonds at 8.30% annually, which corresponds to a redemption yield of 8.56% annually.

The issue has 28 coupon periods that each last for 91 days. The bond offering has a duration of 4.11 years.

According to the debt amortization schedule, repayment will take place in instalments on the same dates when the twelfth, fifteenth, seventeenth, twenty-third, twenty-fifth and twenty-eight coupon periods are paid.

The issue meets the requirements for its inclusion in the Bank of Russia’s Lombard List. Settlements for the deal will take place upon placement of the bonds on the MICEX Stock Exchange on August 6, 2013. The general agent was VTB Capital. The issue was arranged by Sberbank CIB1, VTB Capital, and Gazprombank.