Alfa Bank launched and priced a US$175 million three-year Eurobond
05 Nov 2002
The Offering generated strong demand and the book was more than two times oversubscribed. As a result, the deal size was increased from an initially planned size of US$150 million. Merrill Lynch and UBS Warburg acted as joint lead managers and bookrunners. This is the first Russian Eurobond issued by a privately owned financial institution since the crisis of 1998. The broad-based interest for this transaction reflects the strong brand of Alfa Bank, continued demand for Russian corporates and desire by investors to diversify their portfolios. The deal received a wide European distribution, as well as a solid offshore US participation. The deal was distributed to 19 different countries and 72 different accounts: UK - 29%
Switzerland - 16%
Germany - 9 %
Italy - 9 %
Russia - 2 %
Greece - 3 %
Hungary - 3 %
Rest of Europe and M. East - 8 %
US off-shore - 21 % By investor type the distribution was as follows:
Asset Managers - 63%
Private Banks - 17 %
Retail Banks - 9 %
Banks - 11% Alfa Bank was the only Russian private bank to honour its Eurobond obligations in full after the Russian crisis. Alfa Bank is Russia’s largest private bank and second largest retail bank after Sberbank. As of 30th June 2002, Alfa Bank had assets of US$3.13 billion, equity of US$308 million, ROE of 28.4%. Alfa Bank’s strategy is based on continued organic growth of its corporate and retail business while maintaining focus on risk management and cost control. These materials are not an offer of securities for sale in the United States.
Securities may not be offered or sold into the United States absent registration under the U.S. Securities Act of 1933 or an exemption therefrom. This communication is directed only at persons who (i) are outside the United Kingdom or (ii) have professional experience in matters relating to investments or (iii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc”) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (all such persons together being referred to as “relevant persons”). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.”
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