PAO Credit Bank of Moscow's special purpose vehicle CBOM Finance placed $600 million worth of subordinated Tier 2 loan participation notes on the Irish Stock Exchange.
The rule 144a/Reg S eurobonds, issued to finance a subordinated loan to the bank, carry a coupon of 7.5% and have a maturity period of 10.5 years. They are callable in October 2022 and on every coupon date thereafter at the issuer's discretion.
High demand for the new eurobond issue from Russian and international investors was supported by an offer to buy back a $500 million bond issue due in 2018, announced by the bank and its SPV in March. The value of notes accepted for repurchase amounts to $393.8 million, or 79% of the issue. The purchase of the tendered eurobonds is financed by the new eurobond issue, and together they are aimed at improving the structure of Credit Bank of Moscow's regulatory capital, the lender said April 6.
?itigroup, Credit Suisse, HSBC, ING, JPMorgan, Raiffeisen Bank International, Société Générale, UniCredit Bank and Region Broker Co. acted as lead managers and book runners on the new issue. Credit Suisse Securities (Europe) Ltd., HSBC Bank plc and Société Générale were dealer managers on the tender offer.