Order Book Closed for Placement of Mari El Republic's Bond Issue
OREANDA-NEWS. The order book was closed for the placement of the Mari El Republic's 2014 government bonds worth RUB 2 bln. The bonds have a maturity of 4.1 years from the date of placement.
The bonds have an amortised repayment structure: 40% of their nominal value will be redeemed on the date of payment of the 6th and 8th coupons and 10% - on the date of payment of the 12th and 16th coupons. The nominal value of one bond is equal to 1,000 roubles.
The guidance range for the first coupon rate was 11.70-12.10% annually, which corresponds to a yield of 12.21-12.65% annually.
During book building the organisers of the issue changed the coupon guidance twice, as a result of which the final guidance for the first coupon was set at 11.30% annually.
During book building, 45 investor bids were received. Total demand for the issue amounted to more than RUB 7 bln.
Based on an analysis of bids received, the issuer set the first coupon for the issue at 11.30% annually, which corresponds to a yield of 11.78% annually. The rates for coupons 2-16 are equal to the 1st coupon rate. The issuer decided to accept 43 bids.
The technical placement of the issue is planned for May 28 on MICEX. Organisers: Sberbank CIB and VTB Capital.
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