Alfa-Bank Russia Places US $600 mln Eurobonds
10 Mar 2010
Alfa-Bank Russia has successfully placed Eurobonds totaling US $600 mln.
The Eurobonds were issued by Alfa MTN Issuance Ltd., under Reg. S. rule, are secured by Alfa-Bank Russia and ABH Financial Ltd. under Reg. S. and mature in five years with a fixed coupon rate of 8% per annum. The bonds have been listed on the London Stock Exchange. Alfa-Bank Russia, JPMorgan Securities Ltd. and UBS Investment Bank were the Joint Lead Managers.
There was a road show prior to the placement covering the major financial centers of Europe and Asia, which began on March 2 in Singapore and ended on March 5 in Switzerland.
The book was closed at the end of the day on March 9, followed by the announcements of the cut-off and allocation rates. The settlement date is March 18.
Edward Kaufman, Member of the Executive Board and Co-Head of Corporate-Investment Bank, said, «The placement garnered serious interest from investors, as demand exceeded the offer by five times. The issue increased from US $500 mln to US $600 mln and the coupon rate dropped from 8.25–8.5% to 8–8.25% per annum, and was placed at the lower range.
Alfa-Bank Russia was the first of the largest privately owned banks to place Eurobonds in 2010. A new issue is clear evidence that the international investment community has confidence in us.»
Moody’s rating agency and Standard & Poor’s assigned ’Ba1’ and ’B+’ ratings on the Eurobond issue, respectively, which is in line with Alfa-Bank Russia's long-term credit rating.
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