CBM optimises its liabilities structure by early partial redemption of its senior Eurobonds


On 12 June 2020, CBM cancelled USD 129.8 mln in aggregate principal amount of two senior Eurobond (LPN) issues due 2021 and 2023 repurchased by way of a tender. The purpose was to take advantage of the bank's strong liquidity position and manage its debt maturity profile, reduce the cost of funding, and provide a degree of liquidity to noteholders.

The offer was structured as an "any and all" offer, i.e. all tenders were accepted. The price was fixed at 103.25% and 103.00% for CBOM-21 and CBOM-23, respectively, which represented a c. 0.25% and 1.00% premium vs. pre-launch secondary levels. Investors' participation in the tender reached 17.8% of the total outstanding principal, which was USD 729.6 mln at the tender expiration.

“In view of the prevailing conditions in the domestic debt capital market, we decided to utilise some of our liquidity surplus to repurchase our senior debt. We hope investors would use their freed-up limits to take our other instruments, which will help support the yield curve of our remaining Eurobonds,” – commented Vladimir Chubar, Chairman of the Management Board.

The bank has currently eight outstanding Eurobond issues: six issues with a total outstanding principal of USD 2.5 bln, one EUR 367 mln issue and one RUB 5 bln issue.