Russia’s Rostelecom has announced plans to issue a five-year Rbs5bn (US$166m) bond just a day after placing an offering twice the size.
The telco said it is issuing the new ‘Series 15’ offering, which will carry a coupon of 8.2%, “to capitalise…
Russia’s Rostelecom has announced plans to issue a five-year Rbs5bn (US$166m) bond just a day after placing an offering twice the size.
The telco said it is issuing the new ‘Series 15’ offering, which will carry a coupon of 8.2%, “to capitalise on the strong appetite expressed by investors for Rostelecom bonds”.
Order books for the earlier Rbs10bn (US$331m) ‘Series 18’ offering, which also carries a coupon of 8.2%, were oversubscribed by Rbs10bn, the company said today.
Both offerings are part of Rostelecom’s Rbs100bn (US$3.3bn) bond programme, first announced in March 2012.
All bonds have five-year maturity dates and coupon periods of 182 days. The nominal value of single bonds is Rbs1,000 (US$33).
Like the Series 18 bonds, the new bonds will be placed on the MICEX-RTS Stock Exchange. Settlement is expected to take place on 30 January.
VTB Capital, Gazprombank and Sberbank are arranging the deal.
Fitch and Standard & Poor’s have assigned Rostelecom BBB and BB+ ratings respectively, both with a stable outlook.
Proceeds of bond programme issues will be used to refinance existing debt and fund “strategic objectives”, according to the company’s March 2012 statement.
