The government of the Belgorod region has set the rate of the 1st coupon of 5-year bonds of series 34016 in the volume of 4.5 billion rubles at 5.70%, according to a statement on the website of the department of finance and budget policy of the region.
The rate corresponds to a yield to maturity of 5.82% per annum. In the course of marketing, the benchmark was narrowed once from 5.70-5.80% per annum.
Investors have submitted applications for a total volume of over 17 billion rubles. The issuer has accepted 19 offers for the full volume of the securities issue – 4.5 billion rubles.
The collection of applications took place on September 21 from 11:00 to 15:00 Moscow time.
The organizers of the placement 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 dates 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.
The collection of applications takes place against the background of the resignation of the governor.
As reported, the governor of the Belgorod region Yevgeny Savchenko said 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.
In addition, the ACRA rating agency changed the outlook on the credit rating of the region “AA- (RU)” to “negative”. “The change in the outlook on the credit rating from” stable “to” negative “reflects ACRA's expectations of a sharp decline in the region's available liquidity simultaneously with an increase in the debt burden due to financing of the projected budget deficit,” ACRA said in a statement.
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.
The state debt of the region as of September 1, 2020 amounted to 30 billion 933.911 million rubles, including 3 billion 206.03 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.