Rate of first coupon for Republic of Karelia's bonds set at 12.25%
OREANDA-NEWS. The order book was closed for the purchase of the Republic of Karelia's year 2014 government bonds - certificated bearer securities with a fixed coupon yield and an amortised principal. The bond issue amounts to RUB 3 bln (government registration number of the issue is RU35017KAR0 from October 7, 2014). The bonds have a 5.5 year (2,002 day) maturity period.
The rate of the first coupon was set at 12.25% annually. The rates for coupons 2-22 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 11th coupon, 25% - on the date of payment of the 12th coupon, 25% - on the date of payment of the 14th coupon, 20% - on the date of payment of the 15th coupon, and 10% - on the date of payment of the 22nd coupon. The nominal value of one bond is equal to 1,000 roubles.
The issuer decided to accept investor bids to a total of RUB 2 bln.
The technical placement of the issue is planned for October 15, 2014 and will be a public offering on the MICEX Stock Exchange. Organisers: Sberbank CIB, VTB Capital.
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