Tube and pipe maker allots third issue of debenture bonds with total face value of 5 billion RUR

Trubnaya Metallurgicheskaya Kompaniya JSC, tube and pipe producer, allotted their third issue of debenture bonds with the total face value of 5 billion RUR on February 21, 2006.

The bonds were allotted via Moscow Interbank Currency Exchange (MMVB Stock Exchange) in the course of an open auction aimed at determining the interest rate coming from the first warrant.

130 investor applications were presented altogether, the total demand coming to 7,745.505 million RUR with first warrant interest rate ranging from 7.70% to 8.15% a year. Most applications fell into the 7.9% to 8.0% bids.

The emitting company set the first warrant interest rate at 7.95% a year (39.64 RUR per bond), the interest rate of the second to fourth warrants being the same, that of all the other warrants determined by the emitting company. The terms of the issuing provide for the put option by the emitting company at 100% of the bonds’ a par value within two years of allotment. In this case, the bonds’ effective profitability is estimated to reach the point of 8.11% annually. This impressive result is due to favourable market conditions and the reliability of the syndicate as both the emitting and crediting company.

The whole bulk of the bonds was acquired within a day.

Vneshtorgbank JSC and UralSib Financial Company became the organizers as well as underwriters.

Dresdner Bank GmbH, PromStroyBank JSC, Bank of Khanty-Mansiysk JSC, International Moscow Bank CJSC, Souyz JSC, Eurofinance MosnarBank JSC, ImpexBank JSC, Capital Investment Company Ltd., Megatrastoyl Ltd., Raiffeisen Bank Austria CJSC, RosBank JSC< CentroCredit CJSC, and VBRR JSC became the co-underwriters.

Bank UralSib JSC became the paying agent; the issue serial number is 4-03-29031-N îf November 29, 2005. The bonds are valid within five years and provide for the mid-year warrants

Trubnaya Metallurgicheskaya Kompaniya JSC is planning to use the money obtained from this allotment for converting their loan portfolio and investment programs.


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