Investment bank Renaissance Capital is issuing the first Eurobond from a Russian non-government entity since the beginning of the crisis.
The new programme is to replace Renaissance Capital's existing US$1bn euro medium-term note.
The new US$1bn euro medium-term note programme was assigned ratings of long-term ‘B’ (for senior unsecured notes with maturities in excess of one year) and short-term 'B' (for senior unsecured notes with maturities of less than one year) by Fitch Ratings. Fitch also assigned a long-term 'B' rating to US$225mn notes due April 2011 issued under the programme.
On September 28, Renaissance Capital announced the voluntary debt exchange offer of its existing Eurobonds and the new issue of its 1.5-year notes for a total amount of US$225mn.
The notes in the amount of US$225m due April 2011 raised off the new programme were issued in two tranches, consolidated to form a single series. The first US$104mn tranche was exchanged for a part of the outstanding US$250mn 8.75% notes due November 2009 issued under the old programme. The second US$121mn tranche will be used to repay the residual amount of the bond outstanding in November 2009. The new notes bear a fixed rate of 12% per annum payable semi-annually and were placed at a 4% discount.
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