Demand for the bonds of the Nizhny Novgorod region oversubscribed by 2.5 times

According to the investment attractiveness of the Nizhny Novgorod region — the leaders of Russian regions.


The Government of the Nizhny Novgorod Region ninth placed next bond issue of $ 10 billion with a maturity of 7 years with an average coupon rate of 8.37% per annum, the press service of the Governor and the Government of the Nizhny Novgorod region, with reference to the Minister of Finance Olga Sulim region.

"We place the bond issues since 2006, and the demand for them every year is only growing — said the minister. — And this time, the demand for bonds oversubscribed 2.5 times. In this case, we were able to stay at a rather low rate, close to the refinancing rate of the Central Bank. For comparison, the long-term commercial bank loans are issued, at least, under 13-15% per annum. Given the fact that the borrowed funds, the regional government aims at long-term projects, such a low rate of inflation in the background, and she in the construction industry is about 11%, will save budget money. " 

"Borrowing in the Nizhny Novgorod region remain at a very low level, — said the head of the CA" Finam "in Nizhny Novgorod Constantine Pechnikov. — Now the national debt is 41.7 billion rubles — about 40% of its income, that is by 25% less than the limit set in the region and 60% less than the limit, which requires a stick Federation. Half of this money — the so-called free loans, bond issues were placed on the Moscow Stock Exchange. And how high investor confidence in the Nizhny Novgorod region, very good numbers say Nizhny Novgorod government bond yields. All issues traded with yields of about 8% per annum. This is even lower than that of the Moscow Region bonds and quite a bit higher than that of loans in Moscow. It is said that on the investment attractiveness of the Nizhny Novgorod region — the leaders among the regions of Russia. "

By the way

Nizhny Novgorod. August 27. Interfax-Volga — Nizhny Novgorod region on Tuesday listed the "National Settlement Depository" (provides custody services for the loan) 392 960 000 rubles to pay off the second of the eighth coupon bond loan of 8 billion rubles, the agency "Interfax-Volga" in the regional the Ministry of Finance.

At each security value of 1 thousand rubles credited 49.12 rubles at the rate of 9.85% coupon rate. Holders of the securities will be transferred on August 28.

The third coupon payment date — February 26, 2014.


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