At placement, investors made 66 bids totaling $584 million, with proposed first coupon rates of 6% to 6.75% per year.
The rate of the first coupon payment on the bonds was set through an auction at 6.2% (15.46 rubles, or $0.54 per bond). The rates of the second to sixth coupons will be equal to the first, and subsequent coupons rates will be set by the issuer.
The total yield of a bond up to the 18-month buyback date is 6.35% per year.
The entire issue was sold during the auction on the first day of placement. The bank estimates that foreign investors bought around 35%.
Vneshtorgbank was the organizer, underwriter and paying agent of the issue.
The issue has a term-length of eight years, with coupons paid every three months and a buyback offer at par on the second working day after the sixth coupon payment (April 30 2007).
