Russian volatility takes toll on Aeroflot exchangeable

20 Apr 2011

National Reserve Bank, the lender that holds some of Alexander Lebedev’s industrial stakes, on Thursday postponed a complex $160m bond exchangeable into Aeroflot shares, citing market volatility. Russian equity markets, and Aeroflot, have bounced back since slumping 4%-5% on Monday, but bankers said volumes have been light and that investors remain risk averse.

The name, the structure and the pricing were all said to have met with good interest, but underlying volatility remains high and made the deal difficult to complete at this time.

The deal was, however, launched on Tuesday evening, giving the bookrunners a full day to reflect on ...

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