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Russian Federation : First coupon of Transneft JSCs series BO-05 bonds set at 10.10% per annum.

On April 14, 2016, the order book was closed for Transneft JSCs series BO-05 exchange-traded bonds worth RUB 17 bln, with a maturity of 10 years. The bonds have a put option 5 years after placement. The nominal value of each bond is 1,000 roubles. The placement price is 100% of the nominal.

The initial guidance for the first coupon was set at 10.50-10.75% per annum, which corresponds to a yield to put of 10.76-11.04% per annum. During book building the guidance was reduced twice: to 10.25-10.50% per annum (yield to 5-year put of 10.51-10.78% per annum), and to 10.00-10.25% per annum, and was then narrowed to 10.00-10.15% per annum (yield to put of 10.25-10.51% per annum). The final guidance for the first coupon of Transneft JSCs bonds was set at 10.10% per annum, which corresponds to a yield to put of 10.36% per annum.

The planned volume of the placement was RUB 10 bln, however, due to extensive interest, the issuer decided place the maximum volume of bonds RUB 17 bln worth. During marketing almost 50 investor bids were received, and total demand exceeded RUB 40 bln. As a result of book building the first coupon was set at 10.10% per annum, a record low among 5-year market issues made by corporate issuers since 2014.

The technical placement of the issue is planned for April 21, 2016 on the MICEX Stock Exchange.

The placement was organised by Sberbank CIB and Bank GPB (JSC).

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Publication:Mena Report
Date:Apr 16, 2016
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