OREANDA-NEWS. January 23, 2012. In the current volatile market environment Alfa Banking Group has carefully considered the option to call its subordinated Loan Participation Notes (the "Notes") in the amount of USD 300 million due 2017, and has taken the decision not to exercise the call option, reported the press-centre of Alfa Banking Group.      

The primary reasons to keep the Notes in issue till maturity are the need for Tier 2 capital for the planned expansion of loan portfolio according to Alfa Banking Group’s business strategy, and the higher interest rate that the market would demand for a similar new deal.

Alfa Banking Group placed the Notes bearing an 8.635% coupon on February 22, 2007 with an interest rate step-up on February 22, 2012. The new interest rate will be determined as the sum of the 5-year U.S. Treasury Rate as at February 20, 2012, a margin of 396 basis points and a step-up rate of 150 basis points.