Russia to buy $5.79 billion of 7½% bonds in tender, sets pricing

New York, March 16 – The Russian Federation will buy $5,790,762,219 of its 7½% bonds due 2030 in a tender being carried out by VTB Capital plc.

The bonds will be purchased at $536 per $1,000 principal amount, according to an announcement.

Settlement is planned for March 21.

Russia announced the tender on March 7, saying it would be executed as an intermediated exchange.

Funding for the offer will come from the sale of up to $4 billion of new bonds and the maximum to be paid in the tender was set equal to the gross proceeds from the new deal.

The purchase price for the existing bonds was fixed using a modified Dutch auction process, capped at a maximum of $539 per $1,000 principal amount. The purchase price may also not exceed the market price as calculated under provisions of the Russian tax code.

There is $14,614,636,156 of the 7½% bonds outstanding, or $6,941,952,174.10 on an unamortized basis.

The tender ended at 11 a.m. ET on March 15.

VTB Capital, which will buy the bonds on behalf of the Russian Federation, is also dealer manager for the tender (+44 20 3334 8029 or liability.management@vtbcapital.com). Lucid Issuer Services Ltd. (+44 20 7704 0880 or russia@lucid-is.com) is tender agent.

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