By Ivan Anderzhanov in Moscow

Russian conglomerate Sistema yesterday successfully placed 20bn rouble ($620m) unconvertible second series five-year bond with a put option exercisable in three years following the sixth coupon payment.

Renaissance Capital and  Sberbank acted as the co-lead managers and underwriters of the issue.

The annual coupon rate was set at 14.75% for the first six semi-annual coupon payments.

Despite worsening rouble bond market conditions over the past several days, analysts said the auction saw good demand with 26bn roubles auctioned.

In a research note, Rencap said the results confirm the existence of a steady market demand for rouble-denominated debt.

It said: “In fact, we think the placement could be considered a landmark, signifying that the primary market has opened for second-tier borrowers.”

By Ivan Anderzhanov in Moscow Russian conglomerate Sistema yesterday successfully placed 20bn rouble ($620m) unconvertible second series five-year bond with a put option exercisable in three years following the sixth...