Veles Capital - Daily bonds review, Issuer's news, Rostelecom - Mar 4, 2013.
After a small pause, Rostelecom (a/BB) opens an order book today for the new 5ayear bonds of 19th series. Coupon
benchmark is within the range of 7.9a8.1% annually, which forms the yield by 3ayear offer at 8.06a8.26% annually and duration of 2.73 years.
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The announced benchmarks seem to be fair, but represent no speculative interest. At the lower border of the offered range the premium vs BFL forms 195 bps, which fits the level where the already placed in January loans are trading -15th and 16th series. By the upper border, the spread forms 215 bps, which we assume is fair premium for participation in the placement of the usual issue. At the meantime, alternatives that are more interesting can be found at the secondary market. For instance, an issue with close duration figure, but obtaining aninvestment rating, a loan of NLMK (Baa3/BBBa/BBBa) of the 8th series is trading with premium vs BFL of 205 bps. Therefore, we recommend participating in the placement of Rostelecom closer to the upper border of the announced range.
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|Publication:||Russian Banks and Brokers Reports|
|Date:||Mar 4, 2013|
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