Vimpelcom to issue ruble bonds in the amount of 30 billion RUR ($ 830 000)
VimpelCom (which operates under the Beeline trademark) on 10th of February announced that it intends to submit to the Russian Federal Financial Markets Service documentation required for the potential issuance of Russian ruble-denominated bonds through LLC VimpelCom-Invest, a consolidated Russian subsidiary of VimpelCom. The bonds may be issued depending on VimpelCom's funding needs within a period of one year from the date on which the Russian Federal Financial Markets Service registers the submitted documentation.
The proposed amount of the issue is up to 30 billion Russian rubles, which is the equivalent of approximately $830.4 million at today's Central Bank of Russia exchange rate. The bonds will be guaranteed by VimpelCom.
The proposed maturity period is five years. The coupons are to be paid semiannually. Bond holders will have the right to sell their bonds to VimpelCom-Invest earlier under conditions which will be determined prior to the public placement. The bonds may be issued in three series with face values of 10 billion rubles for each, and the coupon rate for each series will be determined for the period prior to exercise of the put-option or redemption, depending on market conditions. The annual interest rate will be defined as the result of a public placement.
VimpelCom intends to use the proceeds from the bonds for refinancing of its existing indebtedness denominated in foreign currency and the development of VimpelCom's core business.
