CREDIT BANK OF MOSCOW prices its EUR 500 mln Eurobond offering
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12 February 2019, CREDIT BANK OF MOSCOW priced its new senior 5-year EUR 500 mln 5.15% Eurobond issue.
The strongest interest was shown by investors from continental Europe (45%): Germany (20%), Switzerland (14%), France (6%) and other countries (5%). The wide international demand was underpinned by investors from the UK and the USA (26%), Southeast Asia and Middle East (4%). The Russian investors' share is 25%. In total, more than 120 orders were received from 19 countries around the world. The book building process was preceded by a series of meetings with institutional investors in Zurich, Frankfurt, Vienna, Paris, London and New York.
As the deal was oversubscribed by almost two times, the coupon rate was lowered by 35 bps against the upper notch of the initial price guidance.
"We are satisfied with the results of our debut euro-denominated Eurobond placement, – commented Vladimir Chubar, Chairman of the Management Board. — Not only have we lengthened our funding base maturity profile, but we have also diversified our liabilities currency-wise and expanded our investor base. Our Bank returned to the international capital market very quickly and met a strong demand – this success confirms foreign investors' hearty appetite for the Bank".
The bonds are to be issued under Rule 144A and Regulation S. The Eurobond is expected to be rated "BB-" by Fitch Ratings and "BB-" by Standard & Poor’s.
Citi and Societe Generale acted as global coordinators, while ING, Sova Capital and Gazprombank acted as joint lead managers and bookrunners.
This is the Bank's fifth loan participation notes issue in the last 2.5 years. It has currently five outstanding Eurobond issues: four issues with a total outstanding principal of USD 2.23 bln and one RUB 5 bln issue.
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