VTB Bank buys stake in Sistema-Hals for less than $1

20/04/2009

Moscow-based conglomerate Sistema has sold a stake in its property unit, Sistema-Hals, to creditor VTB Bank for less than a $1.

Sistema also gave the bank an option to take an extra 31.5%, effectively a controlling stake in the subisidiary.

London-listed shares of Sistema-Hals rose 11.6% on the news last week.

This week, Sistema-Hals also completed the placement of 3m rouble bonds with par value of 1,000 roubles each. The bonds mature in 2014.Lead manager of the issue is ZAO Raiffeisenbank. Upon the placement, the coupon rate was 15%. The rouble bonds were fully placed at par value.

Secondary bond circulation is planned on MICEX and Sistema-Hals said that it will use the funds raised to restructure its debt.