HCFB Placed Its 5th Eurobond Issue
OREANDA-NEWS. On August 01, 2008 Home Credit & Finance Bank (“HCFB” or the “Bank”), rated Moody’s Ba3/NP/D-, S&P B+/B, one of the leading banks specializing in consumer banking in Russia, announced a successful Exchange Offer and placement of its fifth Eurobond issue for a total amount of US\\$ 450 million, reported the press-centre of HCFB.
The issue, which has a principal amount of US\\$ 450 million and a 3 year tenor with a 2 year put option, is priced to carry a coupon of 11.75% p.a.. This issue was assigned a rating of "Ba3" and "B+" by the international rating agencies Moody's and Standard & Poor's, respectively.
Under the transaction structure HCFB offered holders of HCFB's US\\$ 200 million Existing Notes due in 2010 the opportunity to exchange their Existing Notes for New Notes (the "Exchange Offer"). As a result of this Exchange Offer US\\$ 149,088,000 of the aggregate amount of the Existing Notes was submitted and accepted for exchange (approx. 50/50 Base Exchange/Special Exchange).
The Lead Managers on this issue (who also acted as Dealer Managers for the Exchange Offer) were ABN AMRO, CALYON and ING WHOLESALE BANKING, supported by PPF Banka a.s. and Nomos-Bank acting as Co-Managers for the deal.
The issue was oversubscribed and attracted strong demand from international and local investors including banks, asset management companies, private and retail banks; the total number of accounts holding the new issue reached 68.
The geographical split of investors subscribing to the issue was United Kingdom (53% of accounts), Asia (20% of accounts), Europe (19%), Russia (6%) and others (2%).
The proceeds from the issue will be used by HCFB to fund its further development and growth in the consumer banking market in Russia and for refinancing purposes (including the Exchange Offer). As a result of this latest transaction HCFB will not be coming to the Eurobond market before June 2009 at the earliest.
"Following our successful Eurobond issue in June we noticed unsatisfied demand from investors and realized we could combine this opportunity with an exchange offer for the holders of the 2010 Notes. We really appreciate the interest shown by our bondholders. This demonstrates that our approach is right; there is widespread support for HCFB's funding strategy based on developing and strengthening cooperation with investors and rewarding them for their support. As a consequence of this support in the Exchange and the new Eurobond, we have fulfilled our funding target in the Eurobond market until mid 2009", commented Dmitri Mosolov, Deputy Head of HCFB's management Board.
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