Final coupon guidance for VEB bonds 4.9%, offering could top $500 mln - source
MOSCOW. July 13 (Interfax) - Vnesheconombank (VEB) during the course of book building for a placement of five-year bonds, has set final rate guidance for the first coupon at 4.9% per annum, a source in banking circles told Interfax.
That coupon rate corresponds to a yield to maturity of 4.96% pa.
The bond offering could be increased from the $500 million the issuer was targeting earlier, the source said.
VEB has already raised the offering once, from $300 million to $500 million.
Book building for the bonds took place between 10:00 a.m. and 4:00 p.m., local time on July 13.
Each bond has face value of $1,000 and a coupon period of half a year.
The series PBO-001R-03 bonds are due to be placed on the stock exchange on July 21.
Although the bonds are denominated in dollars, settlement will be in rubles at the Central Bank's official rate on the date preceding the coupon payment or bond redemption.
VTB Capital , Gazprombank and Sovcombank are organizing the placement.
VEB last placed bonds in May, when is sold 15 rubles worth of three-year paper at 10.9% pa.
The bank has 11 classic bond issues worth 344.7 billion rubles in total outstanding as well as seven exchange bond issues worth 70 billion rubles and $500 million in forex denominated bonds.