LSR Group places bonds worth RUB2bn

LSR Group places bonds worth RUB2bn
Published: 28 July 2011

LSR Group  announces the results of the Series BO-05 bond placement worth RUB2bn (US$72.4m).  The principal amount of the bonds placed was 2,000,000 with a nominal value of RUB1000 each.

The first coupon rate was determined today as a result of the tender. The total size of the bond issue was RUB2bn. The duration period is three years (1092 days) from the placement date. The put option is not to be executed.

In the course of the tender investors submitted 54 bids with the first coupon rate ranging from 8.20% to 8.57%. Overall demand amounted to RUB3.1bn. Thus, the issue was 1.5 times oversubscribed. The rate for the duration period was set at 8.47% with the earlier announced rate range of 8.5%-8.75%. The interest rate of the second, third, fourth, fifth and sixth coupons are equal to the first coupon rate. The total number of bids satisfied is 20 (one bid was partially satisfied).

The bond placement is a part of LSR Group strategy aimed at attracting long term financing, in particular for the company’s investment projects.