OREANDA-NEWS. The order book was closed for the Republic of Mordovia’s RUB 3 bln debut bond issue. The bonds are certificated securities payable to bearer. They have a fixed coupon rate and the principal will be amortised (government registration number – RU34001MOR0 dated October 18, 2013).

The bonds have a maturity of 5 years (1,820 days) from the date of placement. Repayment of the principal of the bonds (amortisation) will take place as follows: upon payment of the 7th coupon – 20%, 11th coupon – 20%, 15th coupon – 30% and 20th coupon – 30%.

As a result of book building the decision was made to set the coupon rate at 9.25% per annum for all 20 coupon periods and to perform payments four times per year.

Upon opening the order book on October 21, 2013, first coupon guidance fell in the range of 9.50-9.90% per annum. The offering was oversubscribed due to the large amount of investor interest. This enabled the organisers to lower the marketing range to 9.25-9.50% per annum and close the book at the lower boundary with a coupon rate of 9.25% per annum.

During book building 35 investor bids were received which amounted to over RUB 5 bln. Bids were placed by a wide range of investors including banks, asset management companies, investment firms and insurance companies.

The placement of the bonds will take place on October 28, 2013 on the MICEX at 100% of the price of the nominal value.

The placement was organised by Gazprombank, VTB Capital and Sberbank CIB. Co-underwriter: RON Invest. General agent: Gazprombank.