OREANDA-NEWS. April 04, 2011. On April 01, 2011, the order book was closed on AHML's A18 corporate bond issue with government backing, nominal value of R7 bln and maturity in 2023 (30% of the issue's nominal value on 15.07.2020; 20% on 15.07.2021; 20% on 15.07.2022; and 30% on 15.07.2023). The terms of the placement call for a put option five years from the date of placement.

Over the course of book building, investors submitted 89 bids with coupon rates ranging from 7.85% to 8.35% annually. Overall demand totaled R49.4 bln.

Given these results, AHML set the coupon rate on the series A18 bonds at 8.00% annually. With consideration for the market situation, cost of placement, coupon rates on the bonds and existing demand, AHML has decided to satisfy 78 investor bids.

Commenting the placement results, A. N. Semenyaka, CEO of AHML, said, "The placement results surpassed our expectations, with demand exceeding supply more than seven-fold. As a result, the coupon rate was set 35 bps below the initial book building range. Such high interest in the bonds demonstrates the investment community's growing trust in the Agency as a securities issuer and high rating of the quality of AHML assets. This once again proves the effectiveness of the measures taken by the Russian government to grow Russia's mortgage lending market."

Settlements under the deal will take place upon bond placement on the MICEX on April 5, 2011.

Placement organizers – VTB Capital, Troika Dialog.

Technical underwriter – TransCreditBank.