Russia’s Rostelecom has announced its board of directors will determine the offering price of a bond issue expected to total RUB100bn (US$3.4bn) on 1 March.
The telecoms operator said in a statement the board is expected to set the offering price…
Russia’s Rostelecom has announced its board of directors will determine the offering price of a bond issue expected to total RUB100bn (US$3.4bn) on 1 March.
The telecoms operator said in a statement the board is expected to set the offering price for the thirteen issues of non-convertible documentary interest-bearer bonds at RUB1000 (US$34.3) per bond, equating to 100% of its nominal value.
Rostelecom said it is set to obtain the necessary approvals for the issue, which will include one tranche of exchange-traded bonds totalling RUB60bn (US$2bn) expected to mature in three years, and a second tranche totalling RUB40bn (US$1.4bn) expected to mature in five years.
The company added the board is expected to confirm its decision on the bond issue at a separate meeting, which will be held after the Federal Agency for State Property Management has recognised a suitable price.
Financial markets and the cost of alternative sources of financing will determine when the bonds are placed and over what period, the company stated, adding that proceeds will be used to refinance existing debt.
