9 Oct 2009 15:07

Transaero to close bid book for 3 bln rubles in bonds Oct 27

MOSCOW. Oct 9 (Interfax) - Transaero Airlines will close the order book for a debut 3 billion ruble bond issue on October 27, placement organizer Promsvyazbank said.

Transaero opened the bid book on September 11.

The four-year bonds provide for a yearly offer at par.

The bonds include a mechanism for reducing the currency risk: the issuer will announce an 11-month "foreign currency" offer to redeem the bonds at a price tied to the ruble/dollar exchange rate.

The rate guidance for the semiannual coupons is 16%-18% annually.

Transaero Finances LLC is the guarantor. The bonds meet the requirements for inclusion on the Central Bank of Russia's Lombard list.

The Federal Financial Market Service (FFMS) registered the first issue of Transaero bonds in late August.

The company will sell 3 million of the 1,000-ruble bonds in an open placement.

Transaero itself has not placed bonds before, although its wholly owned subsidiary Transaero Finances placed a debut issue totaling 2.5 billion rubles in February 2006. The rate of the first coupon on the three-year bonds in that issue was 11.65%.

The FFMS registered a second series of Transaero Finances bonds totaling 3 billion rubles in summer last year. However, the company decided against placing them.

Transaero is one of Russia's top five airlines by passenger volume.