Dmitry Baranov, Finam Management MC Leading Expert:

 — Atomenergoprom’s bond flotation can be considered a success

According to the Department of Communications of Rosatom State Corporation, Atomenergoprom 4-year bonds of 06 series with a total nominal value of 10 billion rubles were floated at the MICEX Stock Exchange on August 5 (maturity date — August 15, 2014). The bonds are guaranteed by the state corporation.

Dmitry Baranov, Finam Management MC Leading Expert:

The flotation of bonds carried out by Atomenergoprom can be considered a success. And there are several reasons for it. Firstly, it is a long period floatation. The bonds with such placement period are still rare for our market. Atomenergoprom bonds managed to enter the “up-market club” which includes bonds of issuers with state guarantee (like AHML) and issuers with a very long public credit history at the market, such as metals companies bonds.

Secondly, medium investors with purchase amount from 10 to 200 million rubles showed interest in Atomenergoprom bonds, which provides a good liquidity of the securities and is profitable for future loans of Atomenergoprom.

Thirdly, the chosen bond structure is very successful. A paper with one-year coupons supposes no additional capitalization of interest payments; therefore investors in advance evaluate it at a higher coupon’s rate than papers with more frequent payments of the interest yield.

Fourthly, the floatation of Atomenergoprom bonds was carried out with a minimum premium towards the market. The Cbonds index of simple yield of the most liquid bonds is now traded at the rate of 7.2% per annum. However, taking in consideration the holiday period and the fact that the sale period was very short and in respect of the increased inflationary expectations of the market, caused by the weather anomalies, the floatation of Atomenergoprom bonds as well as its return to the debt market shall be considered a success.