OREANDA-NEWS. June 24, 2014. A tender was held on the MICEX stock exchange in order to determine the first coupon rate of the Volgograd Region Government Bonds with a fixed coupon yield and debt amortization (government registration number RU35005VLO0) worth RUB 5 bln.

The bond issue has a maturity of 5.1 years (1,850 days) from the date issue.

The bonds have an amortised repayment structure: 15% of their nominal value will be redeemed on the date of payment of the 3rd, 7th, 11th, 15th, 17th and 18th coupons and 10% – on the date of payment of the 20th coupon. The nominal value of one coupon is equal to 1,000 rubles.

115 investor bids were received totaling more than RUB 10 bln with a guidance range for the first coupon of 9.00-11.35% annually. The issuer decided to set the first coupon rate at 10.75% annually, which corresponds to a yield to maturity of 10.84% annually and to accept 46 investor bids.

“By entering the market at the optimal time Volgograd Region was able to make a placement with a comfortable coupon rate,” said Alexey Bezrukavnikov, Director of Local Debt Capital Markets, Debt Capital Markets Division, Investment Banking Department, Sberbank CIB.

Organizers: Sberbank CIB, VTB Capital and Rosbank.