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Company News

09 April 2010

Aeroflot closes book under series BO-01 and BO-02 commercial paper offering


April 9, 2010, Moscow -  JSC Aeroflot Russian Airlines has closed the book for its traded bonds of BO-01 and BO-02 series with aggregate nominal value totaling RUB 12 billion and maturity in 1092 days.

The marketing yielded 88 bids from investors with annual coupon rates between 7.50 and 8.25 percent. Overall demand amounted to RUB 24,110 million.

Based on the book building results, Aeroflot set its bonds coupon rate at annual 7.75%. With account to the current market situation, placement cost, coupon rates and the demand revealed, JSC Aeroflot Russian Airlines has decided to accept 49 investor bids.

The settlements under the option will be performed upon the bonds placement at MICEX Stock Exchange on April 12, 2010.

According to Pavel Sokolov, Head of DCM and Structured Products at Troika Dialog, Aeroflot’s debut commercial paper offering revealed considerable demand among Russian and foreign investors, and put Aeroflot abreast with Russia’s largest corporate borrowers.

Shamil Kurmashov, Aeroflot’s Deputy CEO for Finance and Investment said Aeroflot is satisfied with the rate of incoming applications for the company’s debut commercial paper offering, indicating the company’s high credibility among the investment community.

The offering is arranged by Troika Dialog and Sberbank of Russia.

Тройка Диалог is the leading independent investment company in the CIS market. Established in 1991, the company specializes in securities trading, investment banking, trust asset management, direct and venture investments, personal investments and finance. Beyond Moscow, Troika Dialog’s operations are located in 2 cities across Russia plus offices in New York, London, Nicosia and Almaty.

OJSC Sberbank of Russia is the largest bank in Russia and Central and Eastern Europe, accounting for 30% of assets in the Russian banking system and acting as the principal lender to the Russian economy. The founder and main shareholder of Sberbank is the Central Bank of the Russian Federation (more than 60% of voting rights). The bank’s shareholders include more than 200 thousand individuals and legal entities. The bank has the most prevalent branch network in Russia: 17 regional banks, more than 20 thousand branches and internal structural divisions as well as subsidiary banks in Kazakhstan and Ukraine.

Bank of Russia’s license to conduct banking operations is number 1481.

AEROFLOT is Russia’s leading air carrier, member of the global SkyTeam alliance. Its consolidated route network covers 856 destinations in 169 countries. In 2009, Aeroflot carried 8.755 million passengers.

Aeroflot holds the first place in passenger service on economy-class short- and medium-haul flights, and business-class long-haul flights among SkyTeam European airlines. Aeroflot’s leading position was discovered based on SkyTeam’s Onboard Survey results for April – September 2009.

Aeroflot was the first Russian carrier to enter the IOSA Registry, and has multiple times confirmed the certificate. Aeroflot has successfully passed the ISAGO (IATA Safety Audit for Ground Operations) procedure. The company’s Quality Management System is certified for compliance with ISO 9001:2000.

Aeroflot operates one of Europe’s youngest air fleets that consists of 114 aircraft. Aeroflot is based in Moscow, at the Sheremetyevo International Airport. Find more at www.aeroflot.ru.

Department for Public and Government Relations