OREANDA-NEWS. March 12, 2010. Alfa-Bank has successfully placed Eurobonds totaling USD600 mln., reported the press-centre of Alfa-Bank.

The Eurobonds were issued by Alfa MTN Issuance Ltd., under Reg. S. rule, are secured by Alfa-Bank and ABH Financial Ltd. under Reg. S. and mature in five years with a fixed coupon rate of 8% per annum. The bonds have been listed on the London Stock Exchange. Alfa-Bank, JPMorgan Securities Ltd. and UBS Investment Bank were the Joint Lead Managers.

There was a road show prior to the placement covering the major financial centers of Europe and Asia, which began on March 2 in Singapore and ended on March 5 in Switzerland.

The book was closed at the end of the day on March 9, followed by the announcements of the cut-off and allocation rates. The settlement date is March 18.

Edward Kaufman, Member of the Executive Board and Co-Head of Corporate-Investment Bank, said, "The placement garnered serious interest from investors, as demand exceeded the offer by five times. The issue increased from USD 500 mln to USD 600 mln and the coupon rate dropped from 8.25–8.5%  to 8–8.25%  per annum, and was placed at the lower range.

Alfa-Bank was the first of the largest privately owned banks to place Eurobonds in 2010. A new issue is clear evidence that the international investment community has confidence in us".

Moody’s rating agency and Standard & Poor’s assigned ’Ba1’ and ’B+’ ratings on the Eurobond issue, respectively, which is in line with Alfa-Bank’s long-term credit rating.