OREANDA-NEWS. March 24, 2011. Home Credit & Finance Bank (“HCFB” or “the Bank”), rated Moody’s Ba3/NP/D-, S&P B+/B, and one of the largest Russian retail banks, announces the successful placement of its Eurobond issue for the total amount of USD500 million, reported the press-centre of HCFB.

"We are pleased with the results of the placement. Our solid credit profile and successful business model, supported by outstanding financial and business results was very well received by investors’ community world-wide. As a result our Notes attracted strong demand from over 120 investors from 18 countries exceeding USD1.2 billion. The proceeds will be used to fund HCFB’s further business growth to support its market leadership position."

Ivan Svitek,
HCFB Chairman of the Management Board
The issue in the principal amount of USD500 million and a 3 year tenor was priced to carry a coupon of 7% pa. The issue was almost 2.5 times oversubscribed and attracted strong demand from more than 120 investors world-wide, including local and international banks and financial institutions, asset management companies, funds and private banks. The geographical breakdown of investors subscribed to the issue was: continental Europe – 49%, Russia – 25%, United Kingdom – 14%, Asia – 10%, others – 2%.

HCFB’s deal was the first private bank transaction in the capital markets in 2011. Strongly performing HCFB has been well-rooted in retail finance since its foundation in 2002, and has demonstrated high operational and financial results through the full economic cycle, which in return has resulted into an extremely positive response from investors.

The proceeds from the issue will be used by HCFB to support its further business growth in retail finance in Russia, and for refinancing purposes.