Demand for Gazprombank bonds for 10 bln rubles at around 20 bln rubles
MOSCOW. April 17 (Interfax) - Demand for exchange-traded series Bo-16 Gazprombank bonds for 10 billion rubles was around 20 billion rubles, the bank said in a statement.
Over 60 investors submitted bids for bonds. Banks accounted for most of the demand with 47% and insurance companies - 21%. There was a marked rise in the number of private individuals taking part in the placement which Gazprombank links to the exemption of individuals from paying income tax on coupon incomes on corporate bonds issues in 2017-2020.
The book building took place on April 11. During premarketing, guidance on the first coupon was set at 9.5%-9.7% per annum. When book building began, guidance was lowered to 9.2%-9.4% and then again lowered to 9.1%-9.2% during book building; the final guidance is 9.15% per annum.
The bank set the guidance for the first coupon at 9.15% per annum. The rate of 2-7 coupons was the same as the first coupon. An offer maturing in 3.5 years was announced.
The technical placement is scheduled for April 18.
The bonds will pay semi-annual coupons with a maturity of 7 years.
The bank is organizing the placement itself.
There are currently 10 issues of Gazprombank exchange-traded bonds in circulation totaling 80 billion dollars as well as six issues of classic bonds for 49.772 billion rubles.
Gazprombank was Russia's third largest bank by assets, according to the Interfax-100 ranking at the end of 2016.
