OREANDA-NEWS. May 27, 2014. The order book was closed for the purchase of the Krasnoyarsk Region’s bonds. The bond issue amounts to RUB 10 bln (government registration number 34008), has a 1,504-day maturity period and quarterly coupon payments.

The initial guidance range for the 1st coupon rate was 11.60-11.90%, but was lowered three times during the pre-book building period. The final coupon guidance was 10.90% annually. The rates for coupons 2-16 are equal to the 1st coupon rate.

The bonds have an amortised repayment structure: 20% of their nominal value will be redeemed on the date of payment of the 8th coupon, 50% – on the date of payment of the 12th coupon, and 30% – on the date of payment of the 16th coupon. The nominal value of one bond is equal to 1,000 roubles.

During book building, 96 investor bids were received from various groups of investors. Around half (53%) of demand came from credit organisations, and 18% and 29% was from asset management and professional securities market players, respectively. Total demand exceeded the nominal volume of the issue by five times and amounted to around RUB 50 bln. The issuer decided to accept 77 bids to a total of RUB 10 bln. The 1st coupon rate was set at 10.90% annually.

The technical placement of the issue is planned for May 26, 2014 and will be a public offering.

Organisers: Sberbank CIB1, VTB Capital, and OTKRITIE Bank.

Information for editors:

The Corporate & Investment Banking Business (Sberbank CIB) was created as part of the integration of Sberbank of Russia and Troika Dialog. Sberbank CIB’s key areas of activity are corporate finance (including trade finance), the documentary business2, investment banking services, trade operations with securities, and private equity. Sberbank of Russia’s Corporate & Investment Banking Business provides integrated financial solutions and investment advisory services to its clients, which include major corporations, financial institutions, sovereign states and federal and sub-federal government bodies and organisations.