OREANDA-NEWS. On July 23, 2007 JSCIB “UkrSibbank” received proceeds and successfully closed its placement of a three-year US$200,000,000 7,375% “Reg S” Eurobond issue due 2010. BNP Paribas and HSBC were the joint lead managers and joint bookrunners, reported the press-centre of “UkrSibbank”. 

The transaction was structured in the form of loan participation notes (the “LPNs”) issued by HSBC Bank plc for the sole purpose of financing a loan to JSCIB “UkrSibbank”. The LPNs are listed on the Luxembourg Stock Exchange and have been assigned a “ Ba2” rating with a positive outlook by Moody’s Investor Services and a “ BB-” rating by Fitch Ratings.

“This issue has the lowest coupon among all Ukrainian private sector Eurobonds. It’s the new achievement of UkrSibbank in the international market”, stated Mr. Jean-Francois Varlet, Chairman of the Supervisory Council of JSCIB “UkrSibbank”.

The road show was held in Hong Kong, Singapore, Paris, London, Frankfurt and Zurich. The bookrunners’ order book included more than 60 accounts participating and comprised of international investment banks and other financial institutions as well as asset management companies and hedge funds from the United Kingdom, Switzerland, Luxembourg and other European and Asian countries, including the Middle East.
 
Mr. Oleksandr Adarich, Chairman of the Board of JSCIB “UkrSibbank”, added that “the transaction was successfully closed due to the effective actions of UkrSibbank and lead-arrangers BNP Paribas and HSBC. Our book was oversubscribed. The final amount of the issue was limited by the bank and meets our current requirements”.

“The order book was well diversified both by region and by type of investors. The largest demand was from the UK, Middle East and Asia, which accounted for more than a half of the book. Our issue was priced just 245 bps over 3-year US Treasuries”, noted Mr. Oleksandr Sulyayev, Deputy Chairman of the Board of JSCIB “UkrSibbank”.

JSCIB “UkrSibbank” plans to use the proceeds to fund loans to its customers and for other general corporate purposes.