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Новости МКБRSS

CBM has placed USD 600 mln Eurobonds at record-low rate

23.01.2020

Not for release, publication or distribution, directly or indirectly, in whole or in part, in or into the United States of America (except to qualified institutional buyers, as defined in Rule 144A under the US Securities Act of 1933 (the “Securities Act”) that are also qualified purchasers as defined in section 2(a)(51) of the US Investment Company Act of 1940), Australia, Canada, Japan or any other jurisdiction where to do so would be unlawful. This announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or in any other jurisdiction.

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Credit Bank of Moscow (CBM) has become the first Russian bank to issue Eurobonds in 2020. On 22 January 2020, CBM successfully closed the book of orders for its new senior 5-year USD 600 mln 4.7% Eurobond issue.

The coupon rate on this issue became the lowest in the Bank’s Eurobond market history and among all 5-year USD-denominated Eurobonds issued by Russian & CIS privately-owned banks.

The book-building process was preceded by a series of meetings with international investors in Zurich, Geneva, Frankfurt, Vienna, London, Boston, New York, Hong Kong and Singapore. Furthermore, pursuant to its investor diversification strategy, CBM has become the first Russian issuer to tap the Middle East region: a series of meetings took place in the emirates of Dubai and Abu Dhabi.

The strongest interest was shown by investors from Continental Europe (34%). The wide international demand was underpinned by investors from the USA (20%), the UK (15%), and Southeast Asia and Middle East (9%). The share of Russian investors is 22%. In total, more than 180 orders were received from investors from 23 countries globally.

As the deal was oversubscribed, with the order book exceeding USD 1.6 bln at the last update, the coupon rate was lowered by more than 0.55% against the upper notch of the initial price guidance. The final coupon was fixed at 4.7%. Seeing investors’ enthusiasm about the transaction, it was upsized from USD 500,000,000 to USD 600,000,000.

"Another Eurobond issue by CBM has met a high demand from international investors. The current placement lowered the Bank's dollar Eurobond yield curve and marked further diversification of our investor base: we have seen growing activity of investors from Southeast Asia and Middle East, whose demand for our bonds was at an all-time high for a Russian issuer. This is a result of our successful work in terms of investor relations in these regions. We are satisfied with the results of our placement and how the bank was perceived by the international investment community," 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, ING, Societe Generale and UBS Investment Bank acted as global coordinators, while Commerzbank, Emirates NBD Capital, Raiffeisen Bank International and Sova Capital acted as joint lead managers and bookrunners.

It is CBM’s third issue of Eurobonds in the last 12 months. CBM currently has seven outstanding Eurobond issues: five issues with a total outstanding principal of USD 2.5 bln, one EUR 500 mln issue and one RUB 5 bln issue.

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