Russia to buy $6.55 billion of 7½% bonds in tender, none of 11% bonds

New York, Sept. 21 – Russia will accept $6,552,956,936 of its 7½% bonds due 2030 in the tender offer being carried out on its behalf by VTB Capital plc.

None of the 11% bonds due 2018 will be accepted for purchase, according to an announcement.

The purchase price will be $592 per $1,000 principal amount, a figure set using a Dutch auction process.

All non-competitive tenders of the 7½% notes will be accepted while competitive tenders below the purchase price will be accepted in full and those at the purchase price will be subject to a scaling factor of 99.7949171354699%.

Russia expects the new issue condition to the offer to be satisfied by the settlement date.

The tender offers will be funded with proceeds from and are conditioned on an add-on offering of Russia’s 4¼% bonds due 2027 and 5¼% bonds due 2047.

Settlement is planned for Sept. 25.

The $3,466,398,000 original principal amount of 11% bonds will continue to be outstanding while the outstanding amount of the 7½% bonds will be reduced to $7,405,935,958.60 from $10,715,179,211.28, the $21,218,176,656 original principal amount multiplied by the 0.505 pooling factor.

The tender was announced on Sept. 13.

The maximum consideration to be paid in the tender offer will be the gross proceeds, including accrued interest, received from the new notes, which are capped at $4 billion total.

The purchase price under the tender offer will be determined through a modified Dutch auction procedure. The maximum purchase price will be $1,078 per $1,000 principal amount of 2018 bonds and $593 per $1,000 principal amount of 2030 bonds.

The tender offer expired at 11 a.m. ET on Sept. 19.

Bank GPB International SA (+7 499 271 9154, +7 495 988 2353 or liability.management@gazprombank.ru), JSC Sberbank CIB (+357 22 419 000 or liability_management@sberbank-cib.ru) and VTB Capital (+44 203 334 8029 or liability.management@vtbcapital.com) are the dealer managers for the Regulation S and Rule 144A tender offer. Lucid Issuer Services Ltd. (+44 20 7704 0880 or russia@lucid-is.com) is the tender agent.

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