CREDIT BANK OF MOSCOW PLACED ITS EXCHANGE BOND ISSUE SERIES BO-01

02.03.2011

On 22 February 2011 CREDIT BANK OF MOSCOW placed its exchange bond issue series BO-01 at MICEX.

In the course of book building the total number of applications comprised 100 for the total amount of 12.2bln rubles with 8.25-9.00% p.a. yield. As a result, the first coupon rate was fixed at 8.50% that is substantially below the initially stated marketing range of 9.00-9.50% p.a. Effective yield to 2-year put is 8.68% p.a.

Banks Raiffeisen and RosBank acted as Arrangers of the issue.

Exchange bonds series BO-01 have a nominal value of 3bln rubles and a 3-year maturity. The issue implies semi-annual coupon payments and a 2-year put option. The first four coupon rates are fixed at 8.50%, the rest coupon rates are to be determined by the issuer.

"We observed a very positive market reaction to our issue. The placement results proved the existing interest to CBM as the issuer in the market and estimation of the Bank’s creditworthiness at its true value by the investors. The number of applicants and average application amount enable us to expect high liquidity level of the bonds. Efforts of the Arrangers played a large part in the placement success; the combination of two "R" was really fortunate for us," – commented Vladimir A. Chubar, First Deputy Chairman of the Management Board, with respect to the placement results.

All the raised funds will be directed to the main business lines financing of the Bank.

On 25 February 2011 international rating agency Fitch Ratings assigned the following ratings to the issue: Long-term rating of 'B+' and National Long-term rating of 'A-(rus)'. Moody’s Investors Service, in its turn, assigned long-term rating of 'B1'. The assigned ratings reflect the ability of the Bank, as the final payer on the issue, to make coupon and principal payments.