It is for the first time in Russian market practice that previously established coupon rates have been changed on bonds redeemed by the issuer in full. Establishing new, market coupon rates on Series 04 and 05 bonds will allow OJSC "Tele2 - St. Petersburg" ("Tele2") to sell the bonds to investors again. The bonds are included in the Bank of Russia Lombard List which provides additional benefits for investors.
Our work involved substantial analysis of current regulations and court practice in order to find the most efficient deal structure, as well as legal support in relation to amendments to resolution authorising issuance of bonds and registration of such amendments with the Bank of Russia. Project team included Michael Malinovskiy (partner), Kirill Grishin (senior asociate), and Ivan Mahalin (associate).
Series 04 and 05 bonds with a par value of RUB 1000 were placed by Tele2 on 13 February 2012 and mature on 31 January 2022. Total placement amount was RUB 3 billion and RUB 4 billion respectively. The coupon rate for periods 1-4 was set at 8.9%, for periods 5-20 - at 0.01%. On 27 July 2016 the coupon rates for periods 10-17 for Series 04 bonds, and for periods 10-20 for Series 05 bonds were changed and set at 10.7%. The coupon rate for periods 18-20 for Series 04 bonds was cancelled.