First Coupon for Belgorod Region's Bonds Set at 10.65% Annually
OREANDA-NEWS. The order book was closed for the purchase of the government bonds of the Belgorod Region (government registration number RU35008BEL0) worth RUB 5 bln. The nominal value of one bond is equal to 1,000 roubles. The bond issue has a maturity of 7 years.
The guidance for the first coupon, announced by the organizer during book building, was 11.30-11.50% annually and was subsequently reduced three times. The final coupon guidance was 10.65% annually.
The issue has 28 coupon periods of 91 days each. The rates of coupons 2-28 are equal to the 1st coupon. According to the amortized repayment structure, 15% of their nominal value will be redeemed on the date of payment of the 8th coupon, 30% on the date of payment of the 12th coupon, 10% on the date of payment of the 14th coupon, 20% on the date of payment of the 16th and 19th coupons, and 5% on the date of payment of the 28th coupon.
During book building 57 investor bids were made for the bonds and demand exceeded RUB 15 bln for the range of 10.40-11.30% annually. After bidding, the 1st coupon rate was set at 10.65% annually, which corresponds to a yield to maturity of 11.08% annually. The duration of the issue is 3 years.
The technical placement of the issue is planned for June 30, 2014 and will take place on the MICEX.
The organizers of the placement were Sberbank CIB and VTB Capital. The placement agent is VTB Capital.
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