UBRD Buys Out 25,024 BO 05 Bonds

20 October 2017 (13:37)

UrBC, Yekaterinburg, October 20, 2017. The Ural Bank for Reconstruction & Development (UBRD) bought back 25,024 BO 05 Series bonds (SIN RU000A0JTVE3) at 100% of their face value on October 18, 2017, the bank’s press service reports.

The bond owners were also paid all the accumulated coupon yield. The bank currently owns over 99% of the bond issue.

The bonds buy-out was part of the bank’s liabilities spending optimization program. According to UBRD Financial Markets Director Vladimir Zotov, bonds grew too expensive once the Central Bank adopted a policy of gradually brining its key rate down.

‘The UBRD is among the country’s top thirty banks in terms of private and business deposit books, so deposits are seen as a more flexible way to adjust to the Central Bank’s changing rate,’ Zotov says.

BO 05 Series Bonds (coupon period: 182 days; overall face value: RUR 2bn) were made available in April 2013. The bank went through with an additional bond issue in September 2016. The UBRD currently holds 2,955,402 BO 05 Series bonds and has no other bonds in circulation at the moment.

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