OREANDA-NEWS. February 28, 2012. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ completed placing bonds of series 01v denominated in US dollars with a par value of 5000 million US dollars with an offer of one year from the date of placement.

At present, the raised funds in the amount of 500 million US dollars meet the Bank’s requirements for financing.

The bid book for bonds of series 01v was successfully closed on February 17 2012. In the course of marketing the indicative price range for the bonds was reduced from 3.50-3.70% to 3.30-3.50%. The final coupon rate was set by Vnesheconombank in line with the low price range of 3.30% per annum. The total demand for bonds of series 01v at a rate of 3.30 per annum more than doubled the announced amount of placement.

In view of the market conditions, the price of placement, the coupon rate and the existing demand, Vnesheconombank made a decision to accept 32 investors’ bids.  The funds raised through the bond placement are to be used to finance credit-investment activities of State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’.

This bond issue became the first instrument placed on the Russian market among a wide range of investors and it was denominated in a non-national currency.

Vnesheconombank Chairman Vladimir Dmitriev said, “It was very important for us to attract a wide range of investors by offering them a new interesting instrument. This would help to attract new investors to the Russian market and would be another significant step on the way of establishing an International Finance Center in Moscow. This successful bond placement showed once again that the international investment community was interested in purchasing bonds of Vnesheconombank as one of the most reliable borrowers on the Russian debt market. In order to meet investors’ great demand for Vnesheconombank’s debt instruments we are additionally planning to offer classical ruble-denominated bonds to the market in the near future.