Today, Bashneft has completed the purchase of series 04 bonds worth a total of 9 858 534 thousand roubles under a put option.
On February 4, 2016, the Company resolved to set the rate on the ninth and tenth coupons at 9.5% per annum. From February 8 through February 12, Bashneft collected applications from bondholders wishing to sell the said securities.
Under the put option, on February 18, 2016, Bashneft bought out 9 858 534 series 04 bonds worth a total of 9 858 534 thousand roubles at par. CJSC Sberbank CIB acted as the agent for the buyback of the bonds.
'The bonds have been bought back in accordance with the business plan for 2016 and as part of a strategy aimed at optimizing our debt portfolio, which involves reducing the cost of debt servicing while at the same time extending the tenor of debt,' commented Alexey Lisovenko, Bashneft’s Vice President for Economics and Finance and Chief Financial Officer.
Series 04 bonds (state registration number 4-04-00013-A dated September 29, 2011) with a par value of 1,000 roubles each (the total par value of 10 billion roubles) and obligatory centralized custody were placed on February 17, 2012; the coupon rate was set at 9% per annum until the put date and was subsequently increased to 16% per annum in February 2015.
Under the terms of placement, the bonds could be bought out at the request of bondholders one year after the previous put date.