The quarterly coupon of the RUB 8 billion Series 21 issue is set at 8.25% p.a., and of the RUB 7 billion Series 23 issue at 8.95% p.a. Both issues mature in 5 years, with a three-year put option for the Series 21 bond.
The joint book runners of the placement were VTB Capital, TCB Capital and Renaissance Capital Investment Management.
The total demand for the bonds amounted to RUB 25.5 billion, with orders from 80 investors entered into the book.
The placement was arranged in accordance with the resolution of the ALROSA Supervisory Board of April 29, 2010.
Bond issuance is an important instrument of reducing and restructuring the ALROSA Group consolidated debt: by the end of 2010 the financial debt is not to exceed RUB 100.7 billion. Short-term liabilities should be replaced by long-term debt – by the end of 2010 the Company intends to increase the proportion of its long-term debt to over 90%. At the same time ALROSA expects to materially reduce its debt servicing costs.
A placement of up to USD 1 billion 10-year euro bonds is scheduled by ALROSA for Q4 2010.