ZAZ To Make USD 118 mln Bond Placement

Ukraine’s largest car-maker, ZAZ has announced plans to place local bonds worth UAH 600 mln (USD 118 mln) with a 5-year maturity and 13.5% coupon. BrokbusinessBank is lead managing the placement. ZAZ is part of the Ukrauto Group, which produces domestic automobiles along with Chevrolet, Daewoo, Dong Feng and Opel vehicles under license. Oleksandr Klymchuk: This is going to be the largest corporate bond issue denominated in local currency save a UAH 700 mln issue made by Ukrtelecom (UTEL: HOLD) in 2003. In the last quarter of 2006, ZAZ redeemed three previous local bond issues totaling UAH 150 mln with coupons of 14%. In December, ZAZ also placed credit linked notes (CLN) with a 9.75% yield and a three-year maturity for USD 125 mln.