CREDIT BANK OF MOSCOW placed its sixth domestic bond issue


On 11 August 2009 CBM successfully placed its 6th domestic bond issue in the amount of RUR 2 bln (approx US$63 mio) with 3 year maturity at MICEX. This bond issue implies repayment of six coupons and a put option with the possibility of being exercised in one year after the placement. The first coupon rate is 16% as well as the second one, the rest coupon rates are to be determined by the Bank’s Supervisory Board.

The total number of applications comprised 15 with 15%-17% p.a. yield. The following investors participated: Centr-Invest Bank, National Reserve Bank, Russ-Bank, Investment Trade Bank, BrokerCreditService Company, Tatfondbank, Sovcombank, My Bank, Bank Avangard.

The day before the issue, on 10 August 2009, international rating agency Fitch Ratings assigned "BBB-(rus)" national long-term rating to the 6th bond issue.

"The market greeted our proposal favourably. Demand for the Bank’s securities and high rating assigned by the leading rating agency prove CBM’s strong market position and reliable borrower reputation. Funds raised from the issue placement will be used to support the Bank’s lending facilities," – commented Vladimir A. Chubar, Deputy Chairman of the Board.

Currently bond issues series 03, 04 and 05 are in circulation, 03 and 04 issues being included in the Lombard List and Repo List of the CBR and circulating in A1 quotation list at MICEX. Bonds series 05 were placed on 29 April 2009 in the amount of RUR 2 bln with 3-year maturity. It is supposed to include 5th bond issue in A1 quotation list of MICEX as well as in the CBR’s Lombard List in the nearest future.