Russia’s MTS has priced a US$500m ten-year bond with an interest rate of 5%.
The loan participation notes will mature in May 2023 and proceeds will be used for corporate purposes.
The notes will be issued by MTS International Funding, a private…
Russia’s MTS has priced a US$500m ten-year bond with an interest rate of 5%.
The loan participation notes will mature in May 2023 and proceeds will be used for corporate purposes.
The notes will be issued by MTS International Funding, a private company under Irish law, and will be listed on the Irish Stock Exchange.
Gazprombank, JP Morgan and the Royal Bank of Scotland were joint lead managers for the transaction.
MTS announced last Friday that it had mandated the banks to arrange meetings with investors in the US and Europe regarding the issue. At the time, the company said the US dollar tranche may be followed by a Russian ruble tranche if market conditions prove favourable.
New York Stock Exchange-listed MTS said in March that it intends to offer Rbs30bn (US$969m) of 10 and 15-year bonds.
In early April, the company issued a 10-year Rbs10bn (US$316.16m) bond. MTS’ first-ever exchange-traded ruble bond, the notes carry a coupon of 8.25%.
MTS reported consolidated revenues of US$12.44bn for 2012, up 1% year-on-year. Consolidated adjusted OIBDA for the year was up 3% to US$5.3bn with a 42.6% adjusted OIBDA margin. Net debt as of 31 December 2012 stood at US$6.78bn.
