Uralkali buys back BO-01 exchange-traded bonds for $1.06 billion

By Toni Weeks

San Diego, Aug. 23 - Uralkali repurchased its debut BO-01 exchange-traded bonds on Aug. 22, according to a company filing with the London Stock Exchange.

The 29,999,993 bonds were repurchased Aug. 22 at 103 for a total purchase price of RUB 30.9 billion, or $1.06 billion.

Following the repurchase, the company terminated its cross-currency interest rate swap transaction, thereby hedging its ruble bond obligations. As previously announced, the company will achieve a positive financial result from the transaction due to the change in the U.S. dollar exchange rate.

The BO-01 bonds were first traded in February 2011, with the proceeds helping Uralkali to finance its acquisition of a 20% stake in Silvinit during the merger of the two companies.

The potash fertilizer company is based in Perm Krai, Russia.

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