Transaero Airlines closed a credit default swap on a bond issue sold to investors last month.
The deal enabled Transaero to reduce the coupon to 7.65% in US dollars from 12.5% in rubles, initially. Transaero's balanced foreign exchange position related to a part of revenue and payments in US dollars serves to mitigate the risk of exchange rate fluctuations.
The three-year bond was issued on 6 March 2012. It comprises 2.5 million of bonds of BO-01 series, each of which represents a nominal value of 1,000 rubles.
Sberbank, IC Troika Dialog and Promsvyszbank are the arrangers of the bond. Underwriters: RGS Bank, Russian Standard, NOTA-Bank are the underwriters. Moscow Industrial Bank, Avangard, Eurofinance Mosnarbank, IC Veles Capital, Pervobank are the co-underwriters.