VTB Capital has placed three 10-year debut RUB13bn Tele2 bond issues with a buy-back option in 5 years.
Initially, the placements worth was RUB5bn with a coupon rate at 9.00-9.50% per annum. Despite the challenging market conditions the transaction attracted considerable demand. The final book was 3 times oversubscribed at a total of RUB 41.7bn and 100 accounts participated in the issue.
The success of the placement was preceded by considerable preliminary work on structuring the borrow and receipt credit rating. Tele2 Russia received an ВВ+ rating from Fitch Ratings. VTB Capital was the rating consultant.
Alexey Konochkin, Deputy Head of DCM at VTB Capital, said: “is the first ever placement of a foreign issuer in Russia in a post-crisis period. Due to the right choice of strategy we attracted a record number of investors for a debut bonds issue and raised the volume of funds to RUB 13 bn. The initial coupon rate has been decreased 3 times in the last 2 days of forming the book – from 9.00-9.50% to 8.40-8.50%”.
VTB Capital arranged the bond placement along with the support of Raiffeisen bank.
Head of Press