OREANDA-NEWS. July 13, 2010. MDM Bank successfully completed placement of its secondary 8th series bond issue.  The value of the placement totals RUB 6.203 bln, with a flotation period of approximately five years and a put option in three years; the coupon rate is 9%. After the completion of book building, the secondary placement price was set at 100.25%.  The total demand exceeded RUB 7.5 bln; the number of participants includes over 40 entities.  

Vadim Sorokin, the MDM Bank CFO, noted: “The high level of confidence of investors in the bonds is justified by the Bank’s definitive development strategy, its stable financial performance, high level of capitalization and conservative approach to liquidity management – which allowed the Bank to successfully weather the financial crisis, without applying for support to the State or shareholders.”

The large number of investors participating in the secondary placement will ensure that the issue will be highly liquid going forward.  Furthermore, the 8th series has already been entered into the Central Bank of Russia’s Lombard List, which will allow investors to immediately utilize the full spectrum of funding instruments.

The funds raised through the placement will be used for the further expansion of the Bank’s customer lending, both in the corporate and retail segments, including financing clients’ development by means of offering more prolonged resources.