OREANDA-NEWS. July 31, 2008. At the MICEX stock exchange the floatation was held of the Ruble issue of bonds of VympelCom-Invest Ltd, the 100% indirect daughter company of the JSC VympelCom, reported the press-centre of Raiffeisen.

From the results of the tender, the first coupon was fixed by the issuer at 9.05% per annum. Accordingly, the yield to put of the bonds in 1.5 years was 9.25% per annum. As a reminder, the initial pegged price by the organizers of the coupon issue was 8.75-9.25% per annum. 

In the course of the offering 113 investors filed an application with a total sum of more than 16 billion Rubles. In the applications filed by the investors, rates were given in the range 8.5 to 9.25% per annum. The entire volume of the issue was floated in one day. 

Raiffeisen and the Investment Company Troika Dialogue were the organizers of the issue. Dresdner Bank, Deutsch Bank, BCGV, ING Bank (Eurasia), the Investment Company Capital, BK RGION, Uraslib.

The underwriters of the issue were Kommerstbank (Eurasia), Russian Credit Bank, Standard Bank, TranskapitalBank, UniCredit.

The co-underwriters of the issue were ABSOLUTE Bank, HSBC Bank, AK BARS Bank, The Bank of Moscow, The Bank of Saint-Petersburg, The Royal Bank of Scotland, PromsvyazBank, Renaissance, The Investment Bank ‘TRUST’.
 
Bonds with a total nominal value of 10 billion Rubles were issued on a 5 year time period. The bonds issued will be paid off twice a year by coupons. The rate of 1-3 coupons is equal to 9.05% per annum, the rates of the subsequent coupons will be set by the issuer. The issuer has decreed that the owners of the bonds have the right to their prior redemption at the nominal value in 1.5 years; on 26th January 2010. All payments from the issue are guaranteed by the principle head company of the group – the JSC VympelCom (The GAAP center of consolidation).

The funds from the flotation of the loan will be directed towards the further development and expansion of the principle activities, including possible acquisitions or investing in existing operators of wireless communications, and also refinancing in the debt portfolio.