By Ivan Anderzhanov in Moscow
Russian conglomerate Sistema yesterday successfully placed 20bn rouble ($620m) unconvertible second series five-year bond with a put option exercisable in three years following the sixth coupon payment.
Renaissance Capital and Sberbank acted as the co-lead managers and underwriters of the issue.
The annual coupon rate was set at 14.75% for the first six semi-annual coupon payments.
Despite worsening rouble bond market conditions over the past several days, analysts said the auction saw good demand with 26bn roubles auctioned.
In a research note, Rencap said the results confirm the existence of a steady market demand for rouble-denominated debt.
It said: “In fact, we think the placement could be considered a landmark, signifying that the primary market has opened for second-tier borrowers.”
