UBRD to Buy Out BO 05 Bonds

UrBC, Yekaterinburg, October 5, 2017. The Ural Bank for Reconstruction & Development (UBRD) intends to buy out its BO 05 ISIN RU000A0JTVE3 bonds: there are currently under 30,000 such bonds in circulation, the bank’s press service reports.

The bank promises to buy the bonds at 100% of their face value as well as to pay the bond owners the entire accumulated coupon yield by October 18, 2017.

The coupon yield for 10th and 11th coupons comes to 0.1% a year (RUR 0.50 per bond), with the consolidated coupon yield amount for two coupon periods at RUR 3m.

According to UBRD Financial Markets Director Vladimir Zotov, the bonds have grown to be too expensive a funding option as the Central Bank keeps brining its key rate down.

‘Deposits allow for a more flexible reaction to the changing Central Bank’s key rate, and the UBRD has always been one of the country’s top thirty banks in terms of its overall deposit volume,’ Zotov says.

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