OREANDA-NEWS. September 13, 2010. On the 10th of October 2010 the bid book on acquisition of IRKUT Corporation’s stock bonds BO-01 series with total value 5 bln. rubles and circulation period 1092 days is closed.

The organizer of the placement is JSC “MDM Bank”.

Underwriters of the placement: Sviaz-Bank, Bank Rossiya, RONIN, Credit Swiss.

Со-Underwriters: IFD-Kapital, NOTA-Bank, Tatfondbank, Zapsibkombank,  Nipbank, М2М Private Bank, Investtorgbank, Zenit Bank and NOVIKOMBANK.

79 investor’s applications with a coupon rate ranging from 8.97% to 10.20% per annum were filed during the placement. Total demand exceeded 12 bln. rubles. 

As a result of marketing interest coupon bond rate is determined by the IRKUT Corporation in the amount of 9.25% per annum. Due to the market situation, offering price, coupon rate on bonds and the existing demand IRKUT Corporation has decided to acceptance of 67 applications of investors.

Calculations on the transaction during the placement will be held on JSC “FB MISEX” on the 14th of September 2010.

The obtained funds will be directed at ensuring the company's current activities and the preparation for future production of perspective commercial aircraft - MC-21.

Vice President for corporate finance of IRKUT Corporation Denis Polevschikov said: "We are pleased that the market has once again showed high interest to IRKUT Corporation’s stock bonds. This demonstrates the success of our strategy on the debt markets. " 

According to Anton Kiryukhin - head of the Department of investment banking and finance of MDM Bank, "The placement of the debut release of IRKUT Corporation stock bonds enjoyed strong demand from Russian and foreign investors that helped substantially reduce the value of coupon rate on bonds compared to the original reference. IRKUT Corporation is not the first year to borrow in the public market and is well known for its impeccable credit history.”

IRKUT Corporation is the leader of aviation industry of Russia. Over the past two years the Ministry of industry and trade of Russian Federation recognizes the company as “the Best Exporter of the Year” in the aircraft building category.

Over the past three years revenues of the Corporation under IFRS grew by more than 35% and in 2009 totaled 1314 mln. USD.

As a result of 2009, IRKUT Corporation net profit grew more than 4 times compared with 2008 and amounted to 1600 mln. rubles by RAS (Russian Account Standards). Part of the company's net profit for 2009 of 1196.9 million rubles directed to the company’s development, as well as the payment of dividends on securities in 2009, which after taxes amounted to 396.17 million rubles.

The steady growth in revenue is observed over the past few years. IRKUT Corporation has stable tendency of increasing the book of orders which reached 6.9 bln. USD as for August 2010.

In 2010 IRKUT concluded contracts for the supply of Su-30MK fighters for Algeria and Yak-130 combat-trainer for Libya. The company executes contracts for the supply of Su-30MK aircraft and kits for their production under license in India. There are prospects for further increasing of orders for aircraft such as Su-30MK. Irkutsk aviation plant - a branch of IRKUT Corporation has successfully mastered the mass production of Yak-130 new generation combat-trainer, intended for export.

The order book of IRKUT Corporation is replenished by commercial aircraft. In July 2010 IRKUT signed a contract for the delivery of 50 MC-21 short-mid-range aircraft for the Malaysian investing company, Crecom Burj Resources Ltd. The total number of MC-21 aircraft ordered, in accordance with signed contracts and agreements, reached 140. MC-21 project is developed in strict accordance with the approved plans. Under the current federal target program "Development of civil aviation of Russia" the government allocated 72 bln. rubles to develop the MC-21 family of aircraft.

Due to the strategic importance of IRKUT Corporation, the government provides financial support to the company amounting 16,109 mln. rubles, which will finally be realized before the end of 2010.