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CREDIT BANK OF MOSCOW announces early tender results

31.07.2018

On 30 July 2018 CREDIT BANK OF MOSCOW (the “Bank”) announced early tender results in respect of two Eurobond issues by CBOM Finance p.l.c. (the “Issuer”): the U.S.$600,000,000 7.500% Loan Participation Notes due 2027 and the U.S.$700,000,000 8.875% Perpetual Callable Loan Participation Notes. The notes were issued in 2017 for the purposes of financing subordinated loans for the Bank. Tender offers were launched to noteholders on 16 July 2018 in order to decrease the Bank’s cost of capital, optimise its capital structure and provide a degree of liquidity to noteholders.

The Bank announced initially its willingness to repurchase up to U.S.$100,000,000 in aggregate principal amount of the notes. However, on 27 July 2018 (the “Early Tender Time”), the tender offers were oversubscribed with U.S.$317,885,000 in aggregate principal amount of both series of notes having been tendered with slightly less than half of all tenders submitted at the lower end of the price range announced.

Description of the Notes

Outstanding Principal Amount

Regulation S ISIN/Common Code

Rule 144A ISIN/CUSIP

Clearing Premium

Total Consideration1

Aggregate Principal Amount Tendered at or prior to the Early Tender Time

U.S.$600,000,000 7.500%

Loan Participation

Notes due 2027

U.S.$600,000,000

XS1589106910/ 158910691

US12504PAD24/ 12504PAD2

U.S.$18.75

U.S.$878.75

U.S.$ 154,132,000

U.S.$700,000,000 8.875%

Perpetual Callable Loan Participation

Notes

U.S.$700,000,000

XS1601094755/ 160109475

US12504PAE07/ 12504PAE0

U.S.$8.75

U.S.$868.75

U.S.$163,753,000

1 Per U.S.$1,000 in principal amount of notes validly tendered at or prior to the Early Tender Time  and not validly withdrawn. Includes the early tender premium. Does not include Accrued Interest (as defined in the Offer to Purchase), which will be paid on notes accepted for purchase.

To accommodate the instructions received at the lower end of the price range announced and offer a premium of c. 1-2% on top of the minimum price (depending on the issue), the Bank decided to increase the Initial Maximum Tender Amount from U.S.$100,000,000 to U.S.$142,839,000 in aggregate principal amount across both series of notes combined. A large proportion of the remaining tender instructions were closer to the high end of the price range announced.

The tender offers are yet another important step forward for the Bank in implementing its overall Investor Relations strategy, and further demonstrates the continuing commitment of the Bank to its investors.

The offers will finally expire at 5:00 p.m. New York City time (10:00 p.m. London time) on 10 August 2018, unless extended. Due to the oversubscription, any notes tendered after the Early Tender Time will not be purchased pursuant to the tender offers.

The full text of the early tender results and maximum tender amount increase announcement can be found here.