The government of the Belgorod region has postponed from September 22 to September 21 the collection of investor applications for the purchase of 5-year bonds of the 34016 series in the amount of 4.5 billion rubles, a source in the financial market told Interfax. The placement of the new bond issue will take place against the backdrop of the resignation of the regional governor.
The benchmark for the 1st coupon rate is set at 5.70-5.80% per annum, which corresponds to a yield to maturity in the range of 5.82-5.93% per annum.
The collection of applications will take place from 11:00 to 14:00 Moscow time.
The organizers are VTB Capital, BC Region, Sberbank CIB and Sovcombank.
The technical placement is scheduled for September 24.
The issue is depreciated: 12% of the face value will be redeemed on the end date of the 2nd coupon period, 22% of the face value – on the end date of the 3rd and 10th coupon periods, 10% of the face value – on the end date of the 14th coupon period. of the first coupon period, 28% of the face value – on the date of the end of the 15th coupon period, 6% of the face value – upon bond redemption. Quarterly coupons.
As reported, on the eve of the governor of the Belgorod region Yevgeny Savchenko announced that he intends to leave his post. Savchenko served as governor since December 1993 and was the last of the current heads of regions to take this position under Boris Yeltsin.
The previous time the region entered the debt market in May and June. Then the region placed bonds of series 34014 in the volume of 3 billion rubles and series 34015 in the volume of 2.7 billion rubles at rates of 5.9% and 5.8% per annum, respectively. Both issues are five-year amortized.
Currently, there are seven issues of regional bonds in circulation for 17.45 billion rubles.
At the end of April 2020, the rating agency ACRA confirmed the rating of the Belgorod Region and its bonds at the level of AA- (RU), with a stable outlook.
“At the end of 2020, due to a possible decrease in the region's own revenues, the ratio of debt to current income may increase to 33%, which corresponds to a moderately low level of debt burden. At the beginning of 2020, 44% of the region's debt was bonds, 31% – budget loans, 14% – bank loans, the rest – guarantees. The share of interest expenses in total budget expenditures is at a consistently low level (2%). In 2020, the region will have to pay off (refinance) 26% of its debt obligations (7.8 billion rubles), in 2021 – 20% (5.8 billion rubles) “, – said the agency's analysts.
The state debt of the region as of August 1, 2020 amounted to 31 billion 123.182 million rubles, including 3 billion 395.301 million rubles accounted for by state guarantees, 9 billion 83.621 million rubles – for budget loans, 17 billion 450 million rubles – for bonds, 1 billion 194.26 million rubles – for bank loans.