Corporate Communications

VTB Capital successfully completes a debut placement of TMK bonds

27 October 2010

VTB Capital has successfully completed a MICEX placement of TMK Series BO-01 bonds worth RUB 5bn. The tenor is 3 years, with the coupon of 8.85% per annum.

During the 2-week marketing campaign, book bids worth more than RUB 21bn came from 114 investors. The original indicative coupon spread of 9.40-9.80% was lowered twice on closing day due to the books being oversubscribed. VTB Capital placed the TMK bonds at 8.85% per annum, at the bottom of the corrected spread.

The proceeds from the offering will be used for refinancing the company’s debt and general corporate purposes.

Andrey Soloviev, Head of DCM at VTB Capital, said: “We managed to place the bonds significantly lower than indicated, meaning that the transaction was a success. The books were oversubscribed almost four times. We hope that the deal will strengthen the relationship between VTB Capital and TMK”.

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Natalia Cherepova

VTB Capital

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