8 Dec 2010 10:48

VEB buys into EBRD bond issue - bank chairman

MOSCOW. Dec 8 (Interfax) - Vnesheconombank (VEB) has bought ruble-denominated bonds issued by the European Bank for Reconstruction and Development (EBRD), VEB Chairman Vladimir Dmitriev said at a briefing.

"We were involved," Dmitriev said when asked if the bank had bought any of the bonds the EBRD placed in September-October. He did not say, however, how much VEB had spent.

The EBRD placed 7 billion rubles worth of series-8 bonds back in October.

The securities give investors the opportunity to make additional income prior to redemption, the amount of which is pegged to the RDX (Russian Depository Index). This index shows changes in prices on the most liquid Russian blue-chip depository receipts traded on the London Stock Exchange. The Wiener Borse (Vienna Stock Exchange) calculates the index.

The annual coupons on the bonds carry a fixed rate of 0.01% per annum. The bonds mature in eight years.

The EBRD also placed eight-year bonds in its sixth and seventh series of 3.5 billion rubles each in September. The coupon rate was set at 0.015% per annum. Additional yield level on each bond is tied to the same commodities basket.

The EBRD bonds were admitted to trading on the MICEX Stock Exchange. The chief organizer of the placement of the series-8 bonds was Troika Dialog , while Citibank organized the series-6 and -7 bond placement.