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CREDIT BANK OF MOSCOW wins international recognition for innovative subordinated Eurobond

25.03.2014

CREDIT BANK OF MOSCOW’s USD 500 mln subordinated Tier II Eurobond issue due 2018 has been named best financial institution bond at the EMEA Finance Achievement Awards 2013.

The award is the second in recent weeks for the innovative transaction, which in February was also awarded highly commended CEE deal of the year 2013 by Euromoney magazine.

The Eurobond was the first of its kind under new Central Bank of Russia (CBR) Basel III regulatory requirements. Investors were impressed that the deal was brought to market by a private-sector bank, and rewarded CREDIT BANK OF MOSCOW’s innovative structure with healthy oversubscription and tight pricing, with an 8.7% final yield.

The transaction attracted a diverse range of international and domestic investors in Europe (48%), Russia (39%), the U.K. (6%), Asia and Middle East (4%) and the U.S. (3%).

HSBC, Raiffeisen Bank International and The Royal Bank of Scotland acted as joint lead managers and bookrunners. HSBC was also sole structuring adviser for the Rule 144a and Regulation S offering.

The instrument was CREDIT BANK OF MOSCOW’s fourth Eurobond issue and first subordinated Eurobond, and was included in the Bank’s Tier II capital under CBR regulation 395-P.

Earlier this year Global Banking & Finance Review named CREDIT BANK OF MOSCOW as best Eurobond issuer and best borrower on the Russian syndicated loan market in 2013.