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Saturday, February 17, 2018

Bashneft purchases exchange-traded bonds under the offer

Russian oil company Bashneft recently purchased three-year series BO-01 exchange-traded bonds under the offer.

Series BO-01 certificated non-convertible interest-bearing exchange-traded bonds with a par value of $30 each and obligatory centralized custody were placed on Dec. 6, 2011. The coupon rate was set at 9.35 percent per annum.

Under the terms of placement, the exchange-traded bonds could be bought out at the request of bondholders two years after the start of placement on the MICEX Stock Exchange.

The company decided to set the rate on the fifth and sixth coupons at 0.1 percent per annum on Nov. 27. On Nov. 29, book building started as part of the offer to buy out series BO-01 exchange-traded bonds. Book building ended on Dec. 3.

Under the offer, on Dec. 5, the company bought out 6,984,097 series BO-01 exchange-traded bonds worth a total of approximately $213 million at par and paid the accumulated coupon.

Gazprombank acted as the agent for the buyback of series BO-01 exchange-traded bonds.