OJSC AHML Closes Order Book for Its Series A30 Bonds
OREANDA-NEWS. The order book was successfully closed for the purchase of OJSC AHML series A30 bonds. This was the first placement on the Russian debt market since the beginning of the year.
The placement amounted to RUB 6 bln. Repayment of the bonds will take place as follows: 50% of their nominal value will be redeemed on March 1, 2031, 30% of their nominal value will be redeemed on March 1, 2032 and 20% on March 1, 2033. The AHML bond issue includes a 1.5 year put option at face value.
Despite growing risks, the uncertain investment climate and increased volatility amid the unstable geopolitical situation, upon conclusion of book building the demand for AHML bonds was RUB 38 bln, which exceeded supply by more than 6 times. During book building more than 100 investor bids were received, including bids from foreign investors.
The absence of primary offerings on the market since the beginning of the year led to increased interest in AHML's placement; as a result, during book building, the coupon rate changed three times from 10.00-10.40% to 9.60-9.80%. The book was closed at the lower boundary of the coupon guidance range.
As a result of book building and the receipt of bids from potential investors the coupon rate for the series A30 bonds was set at 9.6% annually.
HMLA's successful placement has set the stage for subsequent placements by first-tier issuers on the ruble debt market. In the future this will lead to more primary offerings and create a new benchmark for future offerings from sector companies.
The technical placement is planned for April 28, 2014.
Organizers: ZAO Raiffeisenbank, Sberbank CIB.
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