St. Petersburg places 7 bln rubles in bonds at 7.94%
MOSCOW. Dec 6 (Interfax) - The City of St. Petersburg's Finance Committee Thursday placed 7 billion rubles in series 25039 bonds at an auction.
The committee received 104 bids from 24 investors for a total of 13.015 billion rubles at between 3.45% and 4.15% pa. The cut-off was 3.96% of face value and yield was 7.94%. The first coupon will have a rate equal to 3.96% of face value or 7.94% pr annum, corresponding to yield of 8.1% to maturity. Coupons 2-9 will be equal to the first coupon.
Yield guidance was initially 8%-8.5%, but this was lowered three times, first to 8.25%-8.5%, then to 8%-8.4% and finally to 7.9%-8.3%.
The bonds' planned circulation period is four and a half years. Nine semiannual coupons are attached. According to the terms of the issue, the rates on coupons 2-9 will be the same as on the first.
Investment company Energokapital has been appointed broker.
The city currently has in circulation two bond issues totaling 3.04 billion rubles, which will be redeemed in 2014 and 2015.
St. Petersburg's budget for 2012 has revenues at 368.133 billion rubles, spending at 419.994 billion rubles, and a deficit of 51.861 billion rubles, which does not exceed the deficit cap established at 83.565 billion rubles. As of November 1, the city had a budget surplus of 48.796 billion rubles and was carrying state debt of 6.906 billion rubles. St. Petersburg's maximum state debt level on the first of next year is set at 35.027 billion rubles.
