The debut bond issue of MTS, the largest mobile operator in Russia/CIS (NYSE: MBT), took place on the MICEX on June 24. The interest rate for the first coupon was set at 8.7% annual.
During the placement, demand exceeded supply by 1.7X.
More than 33% of the issue was acquired by foreign investors.
The bonds are offered through MICEX' B quote list.
The issue includes a two-year offer (put option) and semi-annual coupons.
Receipts from the issue are to be used for general corporate purposes, including development through investment in expansion of operations.
Gazprombank, Raiffeisenbank and Troika Dialogue served as organizers for the issue.
Co-organizers included ZAO BSZhV, ZAO Dresdner Bank, OAO Sberbank, ZAO ING Bank (Eurasia), Uralsib, and Novinkombank.
The issue was underwritten by ZАО Kommertsbank (Eurasia), Otkrytiye Financial Company, ОАО Promsvyazbank ZAO Gazenergoprombank, OAО St. Petersburg Bank, ОАО TransCreditBank and ООО HSBC Bank (RR).
The co-underwriters were ОАО AK BARS, ZАО Amro Bank, ООО Region Brokerage Company, ОАО Severnaya Kazna, and ZAO UniCredit Aton.
МТS (S&P BB-; Moody’s Ba2, Fitch BB+) is the largest mobile operator in Russia/CIS, serving more than 85mn subscribers in Russia, Ukraine, Uzbekistan, Turkmenia, Armenia and Belarus. Sistema owns 52.8% in MTS. The company's consolidated revenue in 2007 was $8.25bn, with OIBDA of $4.22bn, a Debt/OIBDA ratio of 0.8X, and an OIBDA margin of 51.2%. The company's shares trade on the New York Stock Exchange. For more detailed information about MTS, please see the company's site at www.mts.ru.
Raiffeisenbank is recognized as a leader on the Russian corporate bond market. In 2001-2008 Raiffeisenbank acted as a lead manager or co-manager for 142 corporate bond issues with a total nominal value of RUR 454 billion.
ZAO Raiffeisenbank is a subsidiary of Raiffeisen International Bank-Holding AG. Raiffeisenbank is the largest foreign-owned bank in Russia, ranking 7th in terms of assets among top Russian banks based on 1Q 2008 results (Interfax-CEA). Raiffeisenbank is ranked 8th in terms of corporate lending based on 1Q 2008 results (Interfax-CEA). According to Interfax-CEA, ZAO Raiffeisenbank ranked 4th in Russia in terms of private deposits and 6th in consumer lending in Russia based on 1Q 2008 results.
Raiffeisen International operates one of the largest banking networks in CEE. 17 markets of Europe’s growth region are covered by subsidiary banks, finance leasing companies and a number of other financial service providers. Over 14 million customers are attended to through more than 3,000 business outlets. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Osterreich AG (RZB), which owns 68.5 per cent of the common stock. The balance is free float, the shares are traded on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group.