LOCKO-Bank has announced an irrevocable offer to purchase bonds series BO-05 by agreement with their owners

LOCKO-Bank decided to purchase bonds series BO-05 on June 14 by agreement with their owners.

The bonds must be presented for acquisition by its owners during the period from 06 to 13 June 2017. The purchase price will be 100% of the nominal value. The number of bonds for acquisition is up to 4 million. "LOCKO-Bank" will act as an agent for this acquisition.

Five-year bonds of LOCKO-Bank series BO-05 with a volume of 3 billion rubles were placed in July 2013 by open subscription. In August 2015 the Bank placed an additional issue for 1 billion rubles. As a result, currently 4 million bonds of this series are in circulation. Bonds are paid semi-annual coupons. The first coupon rate is set at 9.00% per annum, the 2nd – 9.5% per annum, the 3rd and 4th – 11.50% per annum, the 5th and 6th – 14.00% 7-8-th - 12.55% per annum.

In May 2017 the Moscow Stock Exchange approved changes in the documentation of this issue, in accordance with which the maturity date was increased by 5 years. The new maturity date of the issue is 11.07.2023. The bond issue is included in the Lombard List of the Bank of Russia and is traded in the First Level quotation list of the Moscow Stock Exchange.

At present there are 3 issues of the Bank's bonds in circulation totaling 10 billion rubles.

“Due to the Bank's current excess liquidity, it was decided to announce an early offer to purchase bonds from investors. The coupon rate until the next offer with execution on July 21, 2017 is set at 12.55% per annum. The current cost of borrowing for the Bank on the REPO market gives an opportunity to reduce the cost of borrowing for total Bank’s own debt," - commented Pavel Voznesensky, Deputy Chairman of the Management Board of LOCKO-Bank.