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Primary placement yield of B series bonds of ITC LLC “Agromat” hits 13.0%

On October, 15, 2007 issue underwriter, JSCIB “UkrSibbank” initiates the B series bond placement of ITC LLC “Agromat”.

Single yield of B series bond offering by ITC LLC “Agromat” has been fixed at the rate of 13.0% per annum.

Placement yield was fixed by the Issuer on the basis of investors’ bids, volume of which overtopped the volume of B series bond issue by 2.7 times, that allowed to reduce it by 2% against nominal yield (15%). Minimum yield of bond purchase among the submitted competitive bids made up 12.49%. UkrSibbank accepted 21 competitive bids from Ukrainian investors: banks and non-banking institutions.

Primary placement yield is single for all the investors for the entire period of initial offering.

Primary placement will commence on the 15th of October, 2007 and will last till the September, 29, 2008 or upon the last bond being placed through the issue underwriter, JSCIB “UkrSibbank”.

Currently, there are traded A series bonds of ITC LLC “Agromat” in the amount of UAH 50 mln. First series was placed since 16.07.2007 till 18.07.2007. Volume of investors’ bids exceeded the volume of A series bond issue by over 4 times. Placement yield was reduced from 15% to 13.19% p.a. Totally, UkrSibbank accepted 18 competitive bids. Bond purchasers comprised 10 investors including banks, financial institutions and asset management companies.

Basic issue parameters:

  • Volume of emission: UAH 100 000 000,00; two series of UAH 50 000 000,00;
  • À series – UAH 50 000 000,00;
  • À series maturity – by July 12, 2010;
  • Â series – UAH 50 000 000,00;
  • Commencement of  series placing – October 15, 2007.
  • Â series maturity – after the report of bonds placement result being registered with the State Commission for Securities and Stock Market and the certificate of issue registration being granted and till October 11, 2010;
  • Nominal value per bond: UAH 1 000;
  • Coupon income for the first-to-fourth coupon periods under both series makes up UAH 15% p.a., interest rate for the remaining ones shall be determined by the Issuer, but shall not be less than 3% per annum in UAH;
  • Coupon period: 91 days;
  • Premature sale of bonds is possible upon the fourth or the eighth coupon periods of bonds of respective series;
  • Depositary: OJSC “MFS”;
  • Underwriter: JSCIB “UkrSibbank”;
  • Paying agent: JSCIB “UkrSibbank”.

UkrSibbank will maintain the second market liquidity of the Issuer’s corporate bonds by displaying daily quotations in the First Stock Trading System.

Reference:

ITC LLC “Agromat” majors in import, wholesales and retail distribution of ceramic tiles and sanitaryware items, production of paving slabs and ceramic friezes, and feldspar mining. 20% of retail market share for ceramic tiles is under control of the company. ITC LLC “Agromat” is a recognized major company of the group, which incorporates two subsidiaries (“Shpat” and “Service”) and other trading and production enterprises. Upon the last-year results (12 months that ended up at 30.06.2007ã.) net income of the Issuer equals to UAH 424 mln, so that it tops by 18.5% the previous earnings in 2005. Half-year earnings increased by 42.9% against such period in 2006.

JSCIB «UkrSibbank» (www.ukrsibbank.com) was registered on June 18, 1990. The Bank has a full NBU license ¹ 75 dated December 24, 2001 on banking. As of 01.09.2007: net assets – UAH 30.6bn, capital – UAH 3.5bn, loan and investment portfolio makes up UAH 26.7bn, corporate clients’ funds – UAH 4.6bn, individuals’ funds – UAH 3.9Bn. At present regional network amounts to 1000 branches and outlets nationwide. 69 thousand Ukraine’s businesses are customers of JSCIB “UkrSibbank”; number of individuals’ accounts exceeds 2.9mln. In April 2006, it was closed a deal on BNP Paribas purchase of 51% of shares in JSCIB “UkrSibbank”.

BNP Paribas (www.bnpparibas.com) is a European leader on baking and financial market with significant and expanding presence in the USA and leading positions in Asia. The Group is one of the largest world’s banking networks, which is operating in more than 85 countries. Headcount of BNP Paribas exceeds 140 000 employees, including some 110 000 of them throughout Europe. BNP Paribas is a leader developing three key directions: corporate and investment banking, asset management and retail banking

Press-center of JSCIB «UkrSibbank»:
Lilija Bevzjuk +38 (044) 537 49 18 bevzuik@ukrsibbank.com
Tatjana Shikerjavaja +38 (044) 201 22 71 T_Shikerjavaja@ukrsibbank.com
Victoria Pashevskaja +38 (044) 201 22 71 V_pashchevskaya@ukrsibbank.com


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