Today Alfa-Bank (Ba2/BB-) has successfully closed a US$400 million 3-year Eurobond transaction. This is the fourth and largest drawdown to date under the US$1 billion EMTN (Euro Medium Term Notes) Programme which Alfa-Bank established in June 2004. The issue matures on October 10, 2009 and pays a coupon of 7.875%. The offering was priced at 100%. The bonds are listed on the London Stock Exchange and cleared through Euroclear / Clearstream.
The size of the issue is higher than the previously announced target of US$300 million as a consequence of substantial interest received from bond investors. The initial order book exceeded US$800 million, supported by strong diversified demand from over 130 Asian and European investors.
“Alfa-Bank is well-known in the capital markets as being a leader in offering its debt instruments to international investors. The impressive performance and focused strategy of the bank, combined with Russia’s sustained economic growth, have contributed towards the success of this transaction. The fourth issue under the EMTN Programme represents the largest Eurobond issue of Alfa-Bank so far, and we are proud of the fact that investor confidence in our bank is increasing. We are also pleased to see the depth and diversity of the investor base who participated in this deal, which underlines Alfa-Bank as one of the key players on the market”, says Andrew Baxter, Chief Financial Officer of Alfa-Bank.
UBS and JPMorgan acted as Lead Managers and Joint Bookrunners on the deal.
The issue is rated “ÂB-” by S&P and “Âà2” by Moody’s. The proceeds will be used for general corporate purposes.
