Transaero places $102m bond

This story is sourced from

Transaero Airlines has issued and placed a four-year 3 billion roubles ($102.67 million) corporate bond.

The bond issue was completed in a one-day period, with 30 bids placed by participants. Demand was oversubscribed and Transaero says it surpassed the volume offered by 12%. The annual yield for the first and second coupons was set at 16.95%.

The bond issue was organised by Promsvyazbank and co-organizers Sberbank, Troika Dialog, MFK Bank, Moscow Industrial Bank, Sobinbank and Rus-Bank.

It was underwritten by Alba Alliance KB with co-underwriters Alta-Bank, International Joint Stock Bank, Nefteprombank, Razvitie-Stolitsa Bank and Financial House IC.

The carrier says its reputation as a reliable and responsible loan subscriber has played an important role in the successful offering. It adds it was underlined by a timely payment of the first corporate bond issue in February 2009.

Transaero Airlines Chairman of the Board Alexander Pleshakov comments: "I can assure you that our company will continue to meet its obligations on public loans."

Proceeds from the offering will be used to finance Transaero's ongoing business development. The carrier tells CAO that plans for 2010 include the phase-in of eight to 10 second hand aircraft on operating leases. "We plan to add several types: Boeing 737s and 777s," tells a source at the carrier.