Ugra to Float a 6 Billion Roubles Loan

22.06.2009 — News

UGRA.

The Khanty-Mansiysk Autonomous Okrug will float a 6 billion roubles bond loan in 2009. The proceeds from the loan will help cover the regional budget deficit.

The regional government representatives told RusBusinessNews that 6 million bonds worth 1,000 roubles each will be issued. Most probably the bond loan will be floated in three issues worth 2 billion roubles each with maturities of 2, 3 and 4 years. Specific details about the issues, as well as the probable interest rate, will be agreed with the loan initiator.

Ugra's budget deficit in 2009 may exceed 20 billion roubles. This figure depends on the world oil prices, since the region accounts for 6% of the world oil production.

According to the expert estimates, the Khanty-Mansiysk Autonomous Okrug has always been one of the most reliable issuers among sub-federal borrowers; that is why a buyer for the new loan won't be difficult to find. The future placement will depend on the bonds' earning power. At the moment blue-chip corporate bonds issues (Gazprom Neft, MTS, Lukoil), with 14-17% bond yield and 2-3 years of maturity, sell to investors at IPO's like hot cakes.