4 Dec 2009 13:26

Sistema places third series bonds worth 19 bln rubles, demand at 32 bln rubles

MOSCOW. Dec 4 (Interfax) - Sistema fully placed its third series bond issue (worth 19 billion rubles) on Thursday, December 3, the company said in a statement.

Demand for the bonds exceeded the total issue by 70%, reaching 32.1 billion rubles. Applications for the issue were received from 70 international investors.

The issue's organizer is VTB Capital. The placement's syndicate includes Sberbank , Globex Bank, Svyaz-Bank , CentroCredit Bank, Baltic Financial Agency, JP Morgan, Deutsche Bank, Loko-Bank, Nomos-Bank , Raiffeisenbank, RON-Invest, Sovkombank, Promsvyazbank , Stroycredit, Renaissance Capital Investment Company, Uglemetbank and Uralsib Bank.

It was earlier reported that the rate of the issue's first coupon was set at 12.5%.

Sistema collected investor application for the bonds between November 10 and December 1. The guidance for the first coupon was set at 12.25%-13% with a three-year buyback offer. The bonds mature over seven years.

The Federal Financial Markets Service (FFMS) registered the issue at the end of October.

Sistema's subsidiary, JSC Sistema Finance Investments, secured the issue's bond obligations.

Sistema plans to earmark the funds from the placement for refinancing debt and optimizing its debt portfolio for the purposes of increase the share of ruble-based borrowing.

Sistema currently has its first and second series bond issues in circulation coming to 6 billion rubles and 20 billion rubles, respectively. The first issue matures in March 2013 while the five-year second issue was placed last August.