Corporate Communications

VTB Capital successfully closes RUB 3bn Uralvagonzavod bonds placement

16 December 2010

VTB Capital has successfully placed RUB 3bn Uralvagonzavod bonds (co-organized by Transkreditbank). The tenor is 7 years with a 2-year offer. The marketing spread was set at 9.5 – 10% per annum. The books were oversubscribed, allowing VTB Capital to place the bonds at 9.25% per annum.

Alexey Konochkin, Deputy Head of DCM at VTB Capital, said: “We managed to organize a successful comeback for Uralvagonzavod to the ruble corporate bonds market, despite the non-rated issuer”.

Uralvagonzavod is the largest producer of railway cars in the CIS with a 30% market share and one of Russia’s major combat vehicle producers. The company posted Q3 2010 returns of RUB 35.8bn, with net profit rising to RUB 2.7bn.

Promsvyazbank, Sobinbank and UBS were appointed co-organizers of the bonds issue, with Bank Zenith, M2M Private Bank, Libra Capital, Metkombank (Moscow) acting as joint underwriters.

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