UBRD Buys Back 2.2m BO 05 Bonds
13 June 2017 (12:39)
UrBC, Yekaterinburg, June 13, 2017. The Ural Bank for Reconstruction & Development (UBRD) purchased 2,213,4017 BO 05 bonds at 100% of their face value on a buy-back offer on June 8, the bank’s press service reports.
The bondholders also received their accumulated coupon yield; the bank now holds 99% of the entire issue.
The buy-back offer was initiated in order to cut down on the cost of administering the bank’s liabilities. The BO 05 Series is currently the bank’s only bond issue still in circulation, and no new issues are expected to come out any time soon.
‘Given the Central Bank’s ever-declining key refinancing rate, bonds are turning into an expensive fund-raising option. Now is the time for deposits, in terms of which the UBRD is always among the country’s top thirty banks. Deposits allow for a more efficient way to react to the changing key rate,’ says the bank’s Finance Markets Director Vladimir Zotov.
The bondholders also received their accumulated coupon yield; the bank now holds 99% of the entire issue.
The buy-back offer was initiated in order to cut down on the cost of administering the bank’s liabilities. The BO 05 Series is currently the bank’s only bond issue still in circulation, and no new issues are expected to come out any time soon.
‘Given the Central Bank’s ever-declining key refinancing rate, bonds are turning into an expensive fund-raising option. Now is the time for deposits, in terms of which the UBRD is always among the country’s top thirty banks. Deposits allow for a more efficient way to react to the changing key rate,’ says the bank’s Finance Markets Director Vladimir Zotov.
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