October 4, 2012. The Ural Bank for Reconstruction & Development’s BO-1 Series bonds (total value 2bn RUR) hit the stock market yesterday, October 2. The bonds were quoted at 100% of their face value. The issuer promised to pay 12.5% a year during the first and second coupon periods (per-bond profit being 62.33 RUR); after the second coupon period expires, an offer can be made by the bank, the UBRD’s press service reports.

The bids for the bonds could be submitted on October 24-28, 2012 in the book-building mode. The issue was under-written by Uralsib Finance Company and Rosselkhozbank.

All this resulted in 41 bids for the 12.25%-12.5% annual coupon yield; in fact, the initial demand for the bonds exceeded the supply and amounted to 2.55bn RUR.

On the day of the offering proper (October 2), 47 deals were signed, and the entire issue was distributed among the initial investors. The deals were worth 42.5m RUR on average.

‘I feel we have chosen a suitable interest rate, while this impressive number of investors means that this was truly a market offering. Investors do have an appetite for market risks, this is why we expect them to be quite active about this secondary market issue,’ says the bank’s Finance Institutions & Investment Services Director Vladimir Zotov.