Transaero places $85m bond

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Transaero Airlines has placed its bond series BO-01 at a 12.5% coupon on the MICEX stock exchange.

The Russian carrier opened an order book earlier this month on the domestic bonds totalling 2.5 billion rubles ($85.5 million). The issuance comprises 2.5 million of bonds of BO-01 series, each of which represents a nominal value of 1,000 rubles. Coupon guidance was released at 11.5%-12.5% corresponding to yield to put at 11.83%-12.89%.

The bonds have a three-year tenor and a 1.5-year put option from the placement date.

Sberbank, IC Troika Dialog are the arrangers of the bond. The proceeds will be used for fleet modernisation and refurbishment as well as introduction of a broadband internet access on board the aircraft.

Transaero still has three issues outstanding worth 5.5 billion rubles.