OREANDA-NEWS. July 26, 2013. RPK Uralvagonzavod OJSC (UVZ Corporation) has successfully floated its Series BO-01 and BO-02 exchange-traded bonds. Applications from 25 investors were entered in the book.

At the end of the marketing session, interest on the bond coupon was fixed at the lowest level of the 9.00% to 9.25% price range initially announced during the sale. As the book was built, the initial range was narrowed down to between 8.95% and 9.15% per annum. The total demand for the UVZ Corporation’s bonds reached 10.35 billion rubles within the final price range.

Interest payable on coupons 1 to 3 was fixed at 9.00% per annum, which brings the yield on the 1.5-year buyback option to 9.20% per annum.

The issue managing underwriters included the Gazprombank, OJSC, OTKRYTIE Bank, OJSC, NOMOS-BANK (OJSC), Rosselkhozbank, OJSC, AB ROSSIA, OJSC, and AKB Sviaz-Bank, OJSC.

Sberbank KIB (Commercial Investment Bank), CJSC, acted as co-managing underwriter of the issue.

KIT Finance, CJSC, was a co-manager.

IK RUSS-INVEST Investment Company, OJSC, acted as co-underwriter.

The issue was sold by bookbuilding on the MICEX Stock Exchange on July 18, 2013, with Gazprombank (OJSC) acting as placement agent. National Settlement Depository, CJSC, (a nonbank credit organization), is the depositary institution and paying agent.

F.E. Dzerzhinsky Uralvagonzavod Research and Production Corporation, Open Joint-Stock Company (UVZ), is the leading enterprise of an integrated group of over 20 industrial enterprises, scientific research institutions, and design offices in Russia and Europe. The UVZ Corporation turns out some 200 kinds of products, and its core business is making railroad rolling stock (gondola and tank cars), military equipment, and wheeled and tracked farm machinery.

The UVZ Corporation is the biggest producer of railroad cars in the CIS and controls around 35% of the market, and also is Russia’s sole producer of the T-90 heavy tank and specialized vehicles using its wheelbase.

All 100% of the UVZ shares are held by the Government of the Russian Federation represented by the Russian Property Management Agency. UVZ is on the government’s list of core organizations. The Russian Federation Government makes regular contributions to UVZ’s authorized capital and covers some of the corporation’s interest payments. In 2011, Vladimir Putin approved appropriations of 64 billion rubles to fund the UVZ Corporation’s modernization scheme under the federal targeted program “Development of the Defense Industry Complex.”