OREANDA-NEWS. On 14 April 2015, Otkritie FC Bank completed a deal to place two five-year bond issues for a total amount of RUB 4 billion. Otkritie FC Bank became the first borrower to use the new exchange technology: an exchange-traded bonds programme.

‘We are delighted to have acted as pioneers in adopting the new mechanism and we are pleased with the results. Placing bonds as part of a programme allows further flexibility in placing the exact volume that meets the market demand taking into account the issuer's needs as well as saving time and cutting administrative costs associated with the preparation of a separate bond issue, which is critical in an increasingly changing market environment. We thank our investors who took part in this placement and we will continue improving the mechanics of such placements together with the Moscow Exchange,’ said Otkritie FC Bank Vice President and Head of Equity Mikhail Avtukhov. ‘Exchange-traded bonds programmes will allow issuers to follow a simplified procedure when issuing debt securities. Currently, there are exchange-traded bond programmes registered for five issuers and we are pleased that Otkritie FC Bank was the first institution to have taken the new opportunities for raising debt capital. We are hopeful that before long other borrowers will follow the example of Otkritie FC Bank,’ said the Managing Director of Securities Market at the Moscow Exchange Anna Kuznetsova.

Otkritie FC Bank's exchange-traded bonds programme worth RUB 100 billion and maturing in up to 10 years was registered with the Moscow Exchange on 13 March 2015 under Identification No. 402209B001P02E .The book-building for the first issues of Series BO-P01 and BO-P02 bonds within the programme took place on 6-7 April. The final terms for the bond issues were approved for an amount of RUB 2 billion each with a five-year maturity and semi-annual payments of coupon. The first coupon rate on Series BO-P01 bonds was set at 16% p.a. (RUB 79.78 per bond). The first and second coupon rates on Series BO-P02 were set at 16.25% p.a. (RUB 81.03) and 15,25% p.a. (RUB 76.04), respectively.

The issues were placed on 14 April. On 10 April 2014, Series BO-P01 and BO-P02 issues were assigned Identification Numbers 4B020102209B001P and 4B020202209B001P and were included in the top-level quotation list.The Moscow Exchange has been able to assign identification numbers to exchange-traded bond programmes since 7 December 2014 following the legislative act that governs the procedure for assigning such numbers coming into effect.