OREANDA-NEWS. The order book was closed for an issue of the series 35009 sovereign bonds of Samara Region (Government registration number – RU35009SAM0 from 18.07.2013) worth RUB 8.3 bln and with a fixed coupon rate. The principal will be amortized.

First coupon guidance fell in the range of 8.19-8.48% annually, which corresponds to a yield of 8.45-8.75% annually. Over 50 market participants demonstrated interest in the issuance and total demand within the bookbuilding range exceeded RUB 20.9 bln.

Coupon guidance was amended several times during bookbuilding, and the final guidance for the first coupon was in the range of 7.99-8.20% annually, which corresponds to a yield of 8.23-8.46% annually.

Based on an analysis of bids received, the issuer set the first coupon rate at 8.15% annually, which corresponds to an effective yield to maturity of 8.40% annually. The issuer made the decision to accept 44 investor bids.

The bonds have an amortized repayment structure: November 06, 2015 – 20% of the principal; August 04, 2017 – 10%; November 03, 2017 – 15%; August 3, 2018 – 15%; November 2, 2018 – 20%; November 01, 2019 – 15%; July 31, 2020 – remaining 5%. The issue has 28 equal coupon periods, a maturity of 2,548 days, and the duration is 3.8 years. The notional value of each bond is RUB 1,000.  The issue meets the requirements for inclusion on the Central Bank’s Lombard list. Settlements for the issuance will take place on August 9, 2013 on the MICEX. The co-underwriters of the issue were Pervobank, Region Broker Company, Energotransbank, KIT Finance.

The lead agent of the issuance was VTB Capital. Arrangers: Sberbank CIB[1], VTB Capital, Bank Otkritie, Rosbank.