On 12 November, the books for RUB 25bn MTS bond Issues 7 and 8 were successfully closed.
Investors were offered a 10-year tenor worth RUB 15bn with a 5-year offer and a coupon of 8.3 – 8.6% per annum, as well as a 7-year tenor worth RUB 10bn with a coupon of 8.8 – 9.15%. Bids for MTS bonds came from over 70 investors and exceeded a total of RUB 41bn.
Acting as joint bookrunner with Gazprombank, Sberbank and Bank of Moscow, VTB Capital successfully placed the 10-year MTS bonds with a coupon of 8.15% and the 7-year MTS bonds with a coupon of 8.7%.
VTB Capital placed the MTS bonds at the bottom of the initial spread, marking the deal as very successful. This is the first placement of a 7-year below-investment-grade security in recent history. The corporate bonds enjoyed a MICEX A1 list placement, according to new stock exchange listing rules.
Alexey Konochkin, Deputy Head of DCM at VTB Capital, said: “In a difficult market, with high global financial market volatility, we have succeeded in attracting substantial demand and making a quality high-worth placement with an extensive tenor. In 2010 YTD, the VTB Capital team placed 45 issues totaling an approximate RUB 320bn”.
Head of Press