28.04.2008 /Investing
 The Second Bond Issue of ZAO Zheldoripoteka Arranged by TransCreditBank Fully Placed to Bidders
On April 24, 2008 ZAO Zheldoripoteka, a subsidiary of JSC Russian Railways placed its series 02 bond at MICEX. The issue was arranged by TransCreditBank, IB Trust and Baltic Financial Agency, with Trans-Invest LLC acting as the surety for the deal. The issue size is RUR2.5 bn. Par value of each bond is RUR1,000. The issue matures in 4 years. The 1st coupon rate was set at 13.49% through bidding at the time of offering. The 2nd coupon rate equals the 1st coupon rate, while the issuer will set the rates for coupons 3 through to 8. The issue carries 8 semiannual coupons. The issue was fully placed through bidding, investors made 94 bids. The issue was oversubscribed 1.3 times. Pursuant to the Information Circular produced for the offering, Zheldoripoteka intends to use the proceeds of the offering to acquire new sites for development and to perform design and exploration works, as well as to finance construction of new sites under RZhD’s home mortgage program and its own investment program. “In spite of the very challenging environment that prevailed in the money and debt market in recent months, the second series bond was placed successfully, judged both by the yield criterion for comparable tenor, and by the size of demand”, said Vitaly Votolevsky, CEO of Zheldoripoteka.
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