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18 March 2019, CREDIT BANK OF MOSCOW closed successfully the book of orders for its new senior 5.25-year USD 500 mln 7.121% Eurobond issue.
This transaction is the first public borrowing in US dollars by a Russian bank this year and the second international placement of that kind for CBM in 2019 after recent EUR denominated Eurobond issued.
A series of meetings with investors in London, Amsterdam, Munich and New York resulted in an orderbook with a wide geographical coverage: Continental Europe (38%), UK and USA (7%), Asia and Latin America (5%). And, Russian investors contributed 50%. Such distribution demonstrates the international investment community's continuing interest in the Bank’s bond issues. In total, more than 80 orders were given from 19 countries worldwide.
As the deal was oversubscribed by almost 1.5 times, the yield was lowered by 1/8th from the initial price guidance and final coupon was subsequently set at 7.121%.
" In the course of our preceding euro transaction, we noted unsatisfied demand for our debt on the part of dollar investors. The new offering traditionally attracted investors from Continental Europe, and we note a growing interest among Southeast Asian investors. We consider the new offering a success. It helped us further diversify our investor base and lengthen our liabilities maturity profile," – commented Vladimir Chubar, Chairman of the Management Board.
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 Commerzbank, ING and Sova Capital acted as joint lead managers and bookrunners.
This is the Bank's sixth Eurobond issue in the last 2 and a half years. It has currently six outstanding Eurobond issues: four issues with a total outstanding principal of USD 2.23 bln, one EUR 500 mln issue and one RUB 5 bln issue.
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