Alfa-Bank Successfully Closed RUR 10 bn Eurobond IssueOn February 10, 2017, AO «ALFA-BANK» successfully priced the 5 years RUR Eurobond issue totaling RUR 10 bn. The coupon rate is fixed at 9.25% per annum.
As a result of the thorough research of the broad investor base Alfa-Bank has decided to approach the market with a RUR Eurobond offering. Due to the large interest shown by the major global investors (the demand exceeded RUR 20 bn), Alfa-Bank lowered the initial price range of 9,25 — 9,50% and managed to fix the final coupon rate at the lower end of the range for the RUR 10 bn issue maturing in 5 years. The final order book comprises of over 30 orders of investors from various financial centers in Europe, Asia, Middle Eastern countries and, of course, from Russia.
Alexei Tchoukhlov, Deputy Chairman of the Executive Board and Chief Financial Officer, when commenting on the placement results, noted, «We are satisfied with the demand shown by the investors and believe that the issue was placed successfully and at the right time. As the matter of fact we not only raised funds in Russian rubles for 5 years at the coupon rate below the rate at which we placed 3-year local bonds early this year (9.45% per annum, RUR 5 bn), we also managed to accomplish our goal to build on strong foreign demand: the share of foreign orders was 72% of the issue amount.
It is worth to note that in April 2013 Alfa-Bank, having established its LPN Programme, placed 3-year RUR Eurobonds (for RUR 10 bn.), which is still the first-ever and only issue of RUR Eurobonds by a Russian non-governmental bank. Since then, there have been a number of events causing material volatility on the financial markets. Nevertheless, having assessed the long period of stability of the RUR exchange rate against the major currencies, Alfa-Bank decided to return on the Euroruble market and again it became the first and only private Russian financial institution on that market after almost 4 years. We expect that our issue will become a benchmark for subsequent borrowings by Russian issuers in RUR on the international capital markets.»
The notes were issued by Alfa Bond Issuance plc, Ireland. The issue was under the Bank’s LPN Programme under RegS. The joint lead managers are Alfa-Bank and JP Morgan.
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Founded in 1990, Alfa-Bank is one of the largest private banks in Russia, which offers a wide range of products and operates in all sectors of the financial market, including interbank, corporate and retail lending, deposits, payment and account services, foreign exchange operations, cash handling services, investment banking, and trade finance, as well as other ancillary services to corporate and retail customers.
Under International Accounting Standards (IAS), in the first half of 2016, the assets of Alfa Banking Group — which comprises ABH Financial, Alfa-Bank as well as subsidiary financial companies — totaled $33,3 bln, loan portfolio totaled $22.0 bin, total equity was $4.6 bln, with net profit for the first half of 2016 of $161 mln.
By June 30, 2016, Alfa-Bank serves over 277,000 corporate customers and 14 mln individuals. Alfa-Bank has 723 offices and branches in Moscow, Russia and abroad, including a subsidiary bank in the Netherlands, as well as financial subsidiaries in the United Kingdom, and Cyprus.
Alfa-Bank is an official European bank of the 2018 FIFA World Cup and the 2017 FIFA Confederations Cup. Since the moment it was established in 1990, the bank was known for its support to large-scale cultural events. World-famed musicians Ray Charles, Elton John, Tina Turner, Brian Adams, Eric Clapton, Sting, Robbie Williams, Whitney Houston, Paul McCartney, Mark Knopfler and many others visited Russia with Alfa-Bank;s assistance. In 2011 the bank organized a 4D show of internationally acknowledged David Atkins on Moscow’s Vorobyovy Hills visited by over 800 000 spectators. In addition, Alfa-Bank is the organizer of the annual modern music and technology festival Alfa Future People.
ABH Holdings S.A. (ABHH) is a privately owned Luxembourg-based investment holding company investing into several banking groups in the CIS and Europe. ABHH includes Alfa-Bank (Russia), Alfa-Bank (Ukraine), Ukrsotsbank (Ukraine), Alfa-Bank (Belarus), Alfa-Bank (Kazakhstan) and Amsterdam Trade Bank N.V.
Alfa-Bank (Russia), founded in 1990, has developed rapidly to become one of Russia's leading privately owned banks. It provides a full range of banking services — corporate banking, retail banking, investment banking, asset management and trade finance.