OREANDA-NEWS. April 7, 2011. UTair Aviation has successfully issued exchange bonds through its subsidiary UTair Finance totaling 3 billion rubles. Loan underwriters include BK Region, Promsvyzbank, Bank OTKRITIE and Petrokommerz Bank.

Regarding the high demand from the investor’s side, the bid book was closed with the coupon rate at 9% per annum for each issue. Interest rates for the second and all other BO-04 and BO-05 bonds coupons are fixed equal to the interest rate on the first coupon. The bonds will mature in 3 years without intermediate tender, the coupon period is 91 days.

More than 42 investors, among them commercial banks, investment and management companies made competing bids to acquire the bonds with the coupon rate within the range of 8.5% to 9.3% per annum.

As one of the flagships of Russian civil aviation and leader of the global helicopter industry, UTAir makes use of a variety of financial instruments to support its activity and has an unblemished credit history. Among UTair partners are leading Russian financial institutes such as Sberbank, Unicredit Bank, Vneshtorgbank, Akzionerny Bank ROSSIYA and others.

UTair Aviation is continuing its program of fleet upgrade and renovation. During 2011, the airline expects the delivery of more than 40 fixed wing aircraft and helicopters of Russian and foreign manufacture.

Proceeds from the bond offering will be directed in full towads refinancing current airline debts.