OREANDA-NEWS. May 21, 2009. Private Joint-Stock Commercial Bank "Gazbank" executed a put option on its inaugural Eurobond transaction (CLN) arranged by the Bank of Moscow. The bonds in the amount of USD 100 mln were placed in May 2007 with 3 year maturity, and coupon rate of 9.75% p.a.

The terms of the bonds provided for a put option in May 2009, allowing investors to request earlier termination. As a result, Private Joint-Stock Commercial Bank "Gazbank" fulfilled its obligations before the holders of bonds.

"Meeting the requirements of the put option is an extremely positive signal; contrary to common practice among some 3rd tier issuers out of Russia, the borrower decided against the restructuring, — said Denis Gaevski, the Managing Director, Head of the Capital Markets of the Bank of Moscow. — "Gazbank" passed its test with an "A" grade. We are glad to see our clients conscientiously performing on the public markets and securing positions among quality borrowers once the market stabilizes."