ALROSA Placed Two ECP Tranches Worth a Total of $1 Billion

AK ALROSA has effected placement of two tranches of Eurocommercial papers (ECP) in the total volume of $1 billion, Prime were stated by a banking source, RIA Novosti reported.
According to the source, the volume of issue having maturity of 9 months amounted to $725 million and the volume of ECP issue maturing in 1 year reached $315 million. Due to the fact that ECP issued were placed with a discount (subject to 96.9% and 95.8% of the nominal value, accordingly), the actual amount of financing drawn from the placement reached $1 billion.
Return on 9-month ECP issue amounted to 4.125% per annum while the corresponding return on 1-year issue is stated at 4.25% per annum.
Goldman Sachs, UBS and VTB Capital were the arrangers of ECP placement.
VTB Capital Managing Director Andrey Solovyov stated that bid book for ALROSA’s ECP issues was twice as oversubscribed which allows speaking about high investors’ demand for the Russian risks.
“This has been the first Eurobond issue following the Presidential elections and we noted quite good interest of investors which proves favorable environment on the threshold of Eurobond placement by the Russian Federation.” – Solovyov said.
Plans of the diamond mining company pertaining to ECP issue were previously announced last October, when ALROSA mulled ECP placement in November, 2011.