Russias natural juice and baby food producer Lebedyansky has issued a three-year RUR 1.5 billion (EUR 43.7 million) bond, lead manager of the issue Raiffeisenbank Austria Moscow said in a statement on Wednesday.

This is the first bond to have its coupon pegged to the MosPrime rate, a deposit rate determined by eight contributor banks, among which the Russian arms of Raiffeisenbank and Citibank.

Pavel Gourine, Deputy CEO of Raiffeisenbank, responsible for corporate business, commented: "We are convinced that the successful debut placement of this bond will support the increase in the number of issues with a floating coupon rate in the Russian bond market."

Proceeds from the issue will be used for loan restructuring, in particular, for retiring an existing short-term debt.

The subscription campaign attracted bids worth RUR 3.8 billion (EUR 110 million), which is equal to 2.6 times the bond value.

High investor demand allowed for the placement of the lowest coupon rate ever achieved on the non-state corporate bond market, said Patrick Butler, Raiffeisen Zentralbank Oesterrech board member in charge of Treasury and Investment Banking.

The coupon is payable once every three months and carries call options.

"The issue proves once again our capabilities on the Russian and CEE debt market. We are at the forefront of market development in Russia, not only in our commercial but also in our investment banking activities", Butler added.

Raiffeisenbank has been active on the Russian corporate bond market since 2001. Since, it has transacted 105 corporate bond issues with combined worth of RUR 318 billion (EUR 926 million).