December 25, 2009

The Okrug Governor’s press-service informs:

On December 24 at the auction sate of the Moscow Interbank Currency Exchange the Government of the Khanty-Mansiysk Autonomous Okrug-Ugra successfully floated government-owned bond issue in the amount of 6 billion rubles.

In accordance with the regional law on budget for 2009 the Ugra Government planned to make the deficiency payments to the regional budget via raising funds on the financial market through sale of the regional bonds.

In compliance with the decisions, made by the regional government, the bond issue in the amount of 6 billion rubles, in purpose of the equal distribution of the debt load on the budget, consists of three issues – 2 billion rubles each with the repayment dates 2, 3 and 4 years. The coupon yield for bonds is 10 % for two years’ papers, 10,4 % - for three years, and 10,8 % - for four years. The organizer of the issue is Sberbank of the Russian Federation which was acknowledged the winner while the open auction, held by the Department of Investments, Science and Technologies.

Commenting on the event, Deputy Chairman of the Okrug Government for Investments and Innovations Kirill Morozov said: "Successful floating of the bond issue proves that the Okrug Government is a high-class emitter. The coherent work of all the divisions of the Government, chosen period made it possible to save expenses of the Ugra budget. Raised funds make it possible to implement obligations of the regional budget in 2009 and also to finance investment programs in 2010".

While the auction yesterday at the Moscow Interbank Currency Exchange the demand in bonds of the Autonomous Okrug exceeded the offer by almost three tines and amounted to 17 billion rubles and the total number of applications from investors for their purchase amounted to 229. "High demand and high credit quality of Ugra of the investment level, proved by the top international rating agencies, made it possible to sell bonds in each of issues at higher price than their nominal worth. Thus expenses for the government-owned debt service decreased by 73,4 million rubles", - emphasized Vasili Dudnichenko, Director of the Regional Center of Investments. "Thus, the effective rate of the loan is 9,87 % (two years’ issue), 10,17 % (three years’ issue), 10,5 % (four years’ issue)".