OREANDA-NEWS. December 2, 2010. EuroChem announced the results of the placement of its series 03 Rouble bond issue with the initial coupon rate set at 8.25% per annum. 

A total of 57 bids were placed for a sum of RUR 9.2bn.  Investor bids ranged from 7.00% to 8.50% per annum.  Due to the significant level of demand, the initial coupon was set below the initial marketing range of 8.50% to 9.00% per annum.  The entire issue was placed in a single day.

The organizer of this placement is Raiffeisenbank.  Sberbank is a co-organizer, with MBRD and Bank Derzhava acting as co-underwriters.

The bonds issued have a nominal value of RUR 5bn and a maturity of 8 years.  Coupons are paid semi-annually.  The rate for coupons 1 to 10 are equal to 8.25% per annum, subsequent coupons are determined by the issuer.  The decision of the issue also provides bond-holders the right to present their bonds for early redemption at par in five years. 

Funds from this bond payment will be used for refinancing of existing debt and funding of capital investment projects.