CREDIT BANK OF MOSCOW has successfully placed its USD 200 million Eurobonds
July 28, 2011 - CREDIT BANK OF MOSCOW (CBM) successfully placed its 3-year Eurobonds with a fixed coupon rate of 8.25% p.a. at par. The issue was preceded by a road show in Vienna, Amsterdam, Zurich, London and Riga. Raiffeisen Bank International AG acted as sole lead manager.
Notwithstanding volatile market conditions, the book was oversubscribed by 25%. Significant regional diversification of the book consisting of more than 60 single orders with a large number coming from new investors is also worth mentioning. More than two-thirds of the Eurobonds volume were placed outside of Russia with the prevailing share of the UK, Irish and Swiss investors followed by Austrian, German, Baltic and Asian ones. The participation of asset managers, insurance companies and private banking clients contributed significantly to the high quality order book.
“We are greatly satisfied with the fact that even in unstable conditions persisting in the international capital markets Eurobonds of CBM triggered high demand from investors and the book was virtually oversubscribed. This is the evidence of the Bank’s bonds being an internationally attractive investment tool and evidence of high comfort of investors with stable positions of CBM. Utmost interest of investors is also witnessed by the fact that the road show took longer than initially planned, which aimed at reaching the whole investor base interested in the Bank’s debt securities. Stable financial positions of the Bank, its exceptional asset quality and distinct strategy were appreciated by investors at their true value,” – commented Vladimir Chubar, First Deputy Chairman of the Management Board.
The issue was assigned the following ratings by the international rating agencies: the expected long-term rating ‘B+ (exp)’ of Fitch Ratings and preliminary long-term foreign currency senior debt rating ‘B1’ of Moody's Investors Service.
The above mentioned Eurobond issue is the second one over the history of the Bank. Earlier, in 2006, the Bank placed its debut 3-year USD 100 million Eurobond issue with the coupon fixed at 9.5% p.a. Merrill Lynch acted as lead manager and bookrunner.