CREDIT BANK OF MOSCOW announces pricing of USD 500 million Eurobonds



On January 25, 2013, CREDIT BANK OF MOSCOW (the "Bank") successfully priced its 5-year Eurobonds (the "Notes") for a total amount of USD 500 mln with an interest rate of 7.7% p.a. The pricing was preceded by a series of meetings with institutional investors in Hong Kong, Singapore, Zurich, Geneva, London, Boston and New York. Barclays Bank PLC, Merrill Lynch International, Raiffeisen Bank International AG and The Royal Bank of Scotland plc acted as joint lead managers and bookrunners. The Notes will be issued pursuant to Rule 144A and Regulation S.

The Notes will be issued by CBOM Finance p.l.c. for the sole purpose of financing a loan to the Bank. The sale of the Notes is expected to be completed on 1 February 2013, subject to customary closing conditions.

The Notes were placed among both domestic and international investors from a wide range of geographic areas, which included private banks and financial institutions, asset management companies and insurance companies. The geographical split of investors subscribing to the issue comprised Europe (25% of accounts), Switzerland (10%), the USA (24%), the UK (21%), Russia (15%) and Asia (5%).

"This Eurobond issue is the largest in the history of CREDIT BANK OF MOSCOW. We are very pleased with the success of the offering and encouraged by investor feedback" - commented Vladimir Chubar, Chairman of the Management Board.

The Notes are expected to be assigned the following ratings by the international rating agencies: a long-term rating 'BB- (exp)' from Fitch Ratings and a long-term foreign currency senior debt rating 'B1' from Moody's Investors Service.

This is the third Eurobond issue for the Bank. In 2006 the Bank placed its debut 3-year USD 100 million Eurobond issue with a coupon of 9.5% p.a. Merrill Lynch acted as lead manager and bookrunner. In 2011 the Bank placed a 3-year USD 200 million Eurobond issue with a coupon of 8.25% p.a. with Raiffeisen Bank International AG acting as sole lead manager.

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The information contained herein is not an offer, or invitation to make offers, to sell, exchange or otherwise transfer or dispose of the securities referred to herein (as part of their initial distribution or at any time thereafter) in the Russian Federation or to, or for the benefit of, any persons (including legal entities) resident, incorporated, established or having their usual residence in the Russian Federation, or to any person located within the territory of the Russian Federation, unless and to the extent otherwise permitted under Russian law and does not constitute an advertisement or offering of the securities in Russia within the meaning of Russian securities laws and must not be passed on to third parties or otherwise be made publicly available in Russia. The securities referred to herein have not been and will not be registered in Russia or admitted to public placement or public circulation in Russia and may not be "offered", "placed" or "circulated" to any person in the Russian Federation unless otherwise permitted under Russian law.

A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation. Similar ratings for different types of issuers and on different types of notes do not necessarily mean the same thing. The significance of each rating should be analysed independently from any other rating.

This press release contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Important assumptions and other important factors could cause actual results to differ materially from those expected. Except to the extent required by applicable laws, neither the Bank nor any of its affiliates undertakes any obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise.

In connection with the sale of securities referred to herein, one or more parties named as stabilising manager (the “Stabilising Manager(s)”) (or persons acting on behalf of the Stabilising Manager(s)) may over allot securities or effect transactions with a view to supporting the market price of the securities at a level higher than that which might otherwise prevail. However, there is no assurance that the Stabilising Manager(s) (or persons acting on behalf of the Stabilising Manager(s)) will undertake stabilisation action. Any stabilisation action may begin on or after the date on which adequate public disclosure of the terms of the offer of the securities is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the issue date of the securities and 60 days after the date of the allotment of the securities. Any stabilisation action or over allotment must be conducted by the relevant] Stabilising Manager(s) (or persons acting on behalf of such Stabilising Manager) in accordance with all applicable laws and rules.