On 12 July, 2005, Perekrestok Trading House launched domestic bonds worth RUR1.5 billion.
The bonds are placed by an open subscription on the MICEX trading platform with the first coupon rate auctioned.
The auction saw 115 bids totaling RUR 3,687 million. Investors offered first coupon rate of 8.50% to 9.80% p.a., with the most bids ranging between 8.75% to 9.00% p.a.
The first coupon rate set by the Issuer reached 8.81% p.a. (that is RUR43.93 per each bond), the second coupon rate shall equal the first one, with the remaining coupons to be determined by the Issuer. The issue terms provide for a put option by the Issuer at 100% of par due on July 13, 2006.
The effective yield to the one year put option amounted to 9.0% p.a. During the auction, 31 bids made by investors were satisfied and the total amount of the issue was placed at launch.
The nominal amount of the issue is RUR1.5 billion (State Registration Number 4-01-09698-N dated May 11, 2005). Guarantor of the issue is PEREKRESTOK-2000 JSC. The bonds shall mature in 3 years and have semi-annual coupons. The first and second coupons` rate is 8.81% p.a. The rates of the remaining coupons shall be determined by the Issuer. Bond holders are entitled by the Issuer to an early redemption at their par value in a year - on the second day of the third coupon period.
The issue is arranged by Vneshtorgbank and HSBC.
Co-arranger of the issue is Alfa-bank. Underwriter of the issue is Vneshtorgbank.
Financial advisory services to the issue placement are provided by the Federal Stock Corporation, with the NDC acting as a depository and paying agent.
Further information about the issue structure and financial position of the Issuer can be found in the issue documents and information memorandum placed on the web-sites of the Issuer (www.perekriostok.ru) and Vneshtorgbank (www.vtb.ru).
PEREKRESTOK Trading House plans to channel the issue placement proceeds into further development of the PEREKRESTOK store chain.