OREANDA-NEWS. October 03, 2013. 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.