OREANDA-NEWS. On the MICEX stock exchange bids were received for the first coupon rate for the 2013 issue of the government (internal) bonds of the Republic of Bashkortostan with a notional value of RUB 5 bln and fixed coupon rate (government registration number RU34008 dated September 20, 2013). The principal will be amortised. The bonds mature after a period of seven years (2,548 days) from the date of issue.

The bonds have an amortised repayment structure: 20% of their nominal value will be redeemed with the payment of the 8th coupon, 15% on the date of payment of the 12th coupon, 15% on the date of payment of the 16th coupon, 10% - on the date of payment of the 20th coupon, 10% - on the date of payment of the 24th coupon, and 30% - on the date of payment of the 28th coupon. Each bond has a nominal price of RUB 1,000.

During bookbuilding, seventy-four investor bids were received for the bonds with the first coupon rate falling between 7.50% and 8.10% annually. Investor demand amounted to RUB 12 bln. The issuer made the decision to set the first coupon at 7.75% annually, which corresponds to a redemption yield of 7.98% annually. Thirty-four investor bids were accepted for a total of RUB 5 bln.

Ruzaliya Khismatullina, Minister of Finance of the Republic of Bashkortostan, commented: "We would like to thank the organisers for doing an excellent job: their constant interaction with the issuer and professional recommendations enabled us to select the right moment to approach the market and also choose the placement method. As a result the first coupon rate was set at 7.75%, which surpassed our best expectations."

Organisers: Sberbank CIB, VTB Capital.