OREANDA-NEWS. The Bank for Development and Foreign Economic Affairs State Corporation (Vnesheconombank) (“VEB”) closed the book for its BO-01 series exchange bonds in a total principal amount of RUR20bn puttable after 2 years.  

115 investors participated in the transaction with orders totalling RUR52.4bn. Banks accounted for c.60.4% of demand  while investment companies submitted orders for 18.1% and asset managers for 8.1%. International investors contributed 13.4% of the total subscription volume. The final coupon was set at 7.65% p.a. 

The bonds will start trading on MICEX on 19 July 2013. The proceeds will be used for general corporate purposes, including financing of the Bank’s lending and investment activity.

Alexander Ivanov, Deputy Chairman – Member of VEB’s Management Board, said, “VEB has taken advantage of improved market conditions to price a successful offering. The deal was significantly oversubscribed. This was preceded by an extensive effort to align bond issuance under Russian regulations with international capital market standards”. “We are particularly pleased to see that as a result of this work, orders have been submitted by many foreign investors who did not participate in local issues in the past. Their demand was around RUR7bn.” – he also emphasizes.

Arrangers: VTB Capital, Raiffeisenbank, Citi.
Co-arrangers: Globexbank, Promsvyazbank, Ronin, Sberbank.
Underwriters: Bank Saint Petersburg, MTS Bank, Nomos Bank, Rosevrobank, Russian Agricultural Bank.
Co-underwriters: Aversbank, Asia-Pacific Bank, Project Finance Bank, Evrofinance Bank, Kapital AM, KIT Finance, Megatrustoil, Metcombank (Kamensk-Uralsky), Nordea Bank, Partner AM, Petrocommerce, Region, Rosbank, Rosenergobank, Sberbank CIB, Finprombank.