OREANDA-NEWS. July 11, 2012. Vnesheconombank completed placing eurobonds of series 6 denominated in US dollars. The issue’s volume was 1 billion US dollars, the maturity period – 10 years with a coup rate of 6.025%. The spread to US treasuries with maturity date in May 2022 was 440 basis points.

The issue’s underwriters were Credit Agricole, Deutsche Bank, HSBC and J.P. Morgan.

More than 200 investors from the US (with the participation share of 48%), Europe (with the participation share of 27%), Great Britain (with the participation share of 19%), Asia (with the participation share of 4%) and other countries, with institutional investors accounting for the overwhelming participation share. The bid book was oversubscribed by more than three times and the coupon rate was set at a level significantly lower than the coupon levels of Vnesheconombank’s previous ten-year eurobonds.

The issued bonds are being quoted on the secondary market at a price exceeding the par value thus showing that the bond placement was a success.

Vnesheconombank Deputy Chairman Alexandr Ivanov said, “Despite the highly volatile market and worsened market conditions we managed not only to place bonds at a coupon rate significantly lower than the originally stated benchmark but also reach a minimum rate of premium with relation to our own yield curve among the latest issues of eurobonds made by Russian borrowers”.

Alexandr Ivanov said that Vnesheconombank highly appreciates the international investment community’s trust in the Bank against the backdrop of a very unstable economic situation and confirms that the State Corporation’s top-priority objective is to further promote and enhance long-term relations with investors.

The funds raised through placing eurobonds will be used to finance Vnesheconombank’s top-priority projects including in such important sectors as development of infrastructure, innovations, high technologies as well as providing support for the export of Russian products, works and services.