By Susanna Moon
Chicago, Nov. 18 – Russia’s Sistema JSFC said it placed RUB 10 billon of 10-year series 001Š-05 exchange-traded bonds with an initial coupon of 9.9% for a yield of 10.27%.
The bid book closed Thursday, with initial guidance of 9.8% to 9.99% per year for a yield of 10.17% to 10.37%. During the bookbuilding the initial price range was lowered to 9.8% to 9.9% for a yield of 10.17% to 10.27%, according to a company announcement.
Gazprombank, Rosselkhozbank and Sberbank CIB are the organizers.
The rate for the first 13 coupons was set at 9.9% per annum.
The issue calls for a tender offer holder repurchase option after 3.25 years.
“This offering is already Sistema's second debt issue this month,” Sistema senior vice president and finance director Vsevolod Rozanov said in the press release. “Strong demand for Sistema bonds confirms the investment community’s positive assessment of the company’s strategy and the quality of our assets.”
Sistema is planning to retire a number of debt securities in the fourth quarter, including its series 03 exchange-traded bonds.
“With this bond issue Sistema will further optimize the structure of its debt portfolio. The transaction will also allow the company to maintain its investment resources at the necessary level,” Rozanov said.
Sistema is a Russian conglomerate based in Moscow.
| Issuer: | Sistema JSFC
|
| Issue: | Series 001Š-05 exchange-traded bonds
|
| Amount: | RUB 10 billion
|
| Maturity: | 10 years
|
| Organizers: | Gazprombank, Rosselkhozbank and Sberbank CIB
|
| Co-organizers: | MTS Bank and East West United Bank SA
|
| Agent: | Gazprombank
|
| Coupon: | 9.9%
|
| Yield: | 10.27%
|
| Pricing date: | Nov. 17
|
| Settlement date: | Nov. 25
|
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