On May 29, 2007 JSC Atomstroyexport its ASE-Finance debut bonds worth RUB 1 500 000 000. The bond issue of a company operating in high-end nuclear technologies market and constructing nuclear power facilities abroad has spurred investors' interest.
The bonds placement was arranged as an auction that involved over 30 investment companies and Russian banks including such large ones as VTB, NOMOS, TRUST, MBRD, Hanty-Mansiisk bank, Promstroybank as well as Troika-Dialog, Capital, RTK Broker and other investment companies.
In the course of the placement, investors submitted 81 applications for RUB 4 486 000 000, thus three times exceeding the original offer. That was the reason for a placement rate being too low and making up 7,75% of annual interest rate (38,64 rubles for each bond). The first coupon rate offered by investors ranged from 7,05% to 8,5% of annual interest. The issue terms envisage an offer for advance bonds buyback in 2 years at 100% from its face value. Effective bond yield made up 7,9%. The issue was placed during a competition by defining a coupon yield rate.
Russian Funds investment group arranged the bonds issue with JSC VTB-Bank acting as a coarranger.
Complete JSC ASE loan placement in such record time and with such low rate reveals confidence of financial market representatives towards Russian nuclear power companies as well as bright prospects lying ahead of Atomstroyexport.
Atomstroyexport is the first company of Russian nuclear industry setting a precedent for an application of public financial market instruments in its activity. The company is continuously implementing a strategy aimed at development of an efficient management system.
JSC Atomstroyexport - is a leading Russian company, implementing intergovernmental agreements for the construction of nuclear power objects abroad. At present, it is the only company in the world concurrently constructing 7 nuclear power-generating units in China, India, Iran and Bulgaria.
SOURCE: JSC Atomstroyexport
DATE: May 31, 2007
Topics: NPP, Atomstroyexport, Russia