23 Dec 2009 13:12

Bashneft places 50 bln rubles in bonds

MOSCOW. Dec 23 (Interfax) - Bashneft fully placed a first three series of bonds totaling 50 billion rubles, the company said in a statement.

Bashneft placed a first and second series totaling 15 billion rubles each and a third series totaling 20 billion rubles.

The bonds are for seven years.

The rate of the first coupon on all the bonds was set at 12.5% annually. The rates of the second through sixth coupons are the same as the first.

The bonds are being placed in a book build. The bid book opened on December 9 and closed on December 17.

VTB Capital is the issue organizer.

The bulk of the proceeds will be used to purchase controlling stakes in Bashkortostan-based fuel and energy companies (a total of about 41 billion rubles might be needed).

Sistema acquired controlling stakes in the Bashkortostan fuel and energy companies in April 2009. It plans to consolidate all the enterprises on Bashneft's balance sheet to form a vertically integrated oil company.