Bank Electronika Underwrites Second Bond Issue for Iskrasoft

Bank Electronika has underwritten the second issue of Iskrasoft’s corporate bond obligations. The placement occurred on March 6, 2007, in the amount of 300 million rubles.

The Iskrasoft series 02 bonds (government registration ¹ 4-02-01550-J, dated December 26, 2006) are interest-bearing, non-convertible, documentary obligations with mandatory central safekeeping. The March 6 placement was done on the MICEX by public subscription at 100% of nominal value. The bonds have a three-year term to maturity. Under terms of the offering, at one year after placement the company is obligated to issue an offer to re-purchase. The total amount of the issue was 300 million rubles.

During auction bidding, interest on the first coupon of the bonds was established at 13.3% per year. Interest rates on the second through sixth coupons will equal that of the first. Iskrasoft will pay coupon interest on its corporate debt every six months.

Expert RA has assigned Iskrasoft’s second borrowing a Â++ rating. The credit rating of Iskrasoft company is B+.  

Iskrasoft plans to use part of the funds it attracted with the placement to reconstruct its existing debt of approximately 66 million rubles and to augment working assets, principally to purchase merchandise inventory. The largest part of the borrowing will be concentrated in investment to develop the Iskrasoft Group, which plans to extend its retail network and modernize its storage equipment and information technology.

Planeta Capital was organizer of the borrowing. Co-organizers were the International Bank of St. Petersburg, PIO Global, Bank SOYUZ and Probiznesbank. Bank Electronika was the underwriter for the issue; NOMOS-BANK was co-underwriter.

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