Credit Bank of Moscow eurobond sale greeted by strong demand

Russia's second-largest private bank successfully tapped global debt markets this week, via the sale of a heavily over-subscribed issue.

On Tuesday, Credit Bank of Moscow sold €500m of senior five-year debt with a coupon price of 5.15%.

The sale was almost two times' oversubscribed, with foreign investors accounting for the bulk of demand, pushing the coupon rate 35 basis points below the upper end of the initial price guidance range for the deal.

"Our Bank returned to the international capital markets very quickly and met a strong demand – this success confirms foreign investors' hearty appetite for the Bank," said Vladimir Chubar, CBoM's chairman.

"Not only have we lengthened our funding base maturity profile, but we have also diversified our liabilities currency-wise and expanded our investor base."

Tuesday's transaction marked the fifth sale of loan participation notes by CBoM over the last two-and-a-half years.

Russian investors took-up 25% of the issue, while those from the US and UK came away with 26% of the bonds, followed by German ones at 20% and Swiss-based buyers at 14%.

In total, investors from 19 countries placed orders.

The new Eurobond issue was expected to receive a rating of BB- from Fitch Ratings and Standard&Poor's, CBoM said in a statement.

Citi and Societe Generale were the global coordinators for the sale, with ING, Sova Capital and Gazprombank acting as joint lead managers and bookrunners.

CBoM had five outstanding issues of so-called Eurobonds, four issues with a total outstanding principal amount of $2.23bn and another worth 5.0bn roubles.