OREANDA-NEWS. June 1, 2012. Non-convertible, interest-bearing bonds of OJSC NEFTYANOY ALLIANCE Commercial Bank (‘Oil Alliance Bank’) start trading on the non-listed securities section at the MICEX Stock Exchange in Moscow. The Series-1 bearer bonds use a single depository and are repayable 3660 days after placement, with a possibility of early settlement at the issuer’s discretion.

Following the bond placement and state registration of the placement report, the Moscow Division of the Bank of Russia officially declared the NEFTYANOY ALLIANCE Series-1 bonds to be a subordinated ruble loan. Additional capital of NEFTYANOY ALLIANCE was therefore increased by the value of the bond loan (RUB 250 million), in compliance with the Regulation on the Method for Calculation of Shareholder Funds (Capital) of Credit Organisations (Regulation N 215-P of the Bank of Russia, dated February 10, 2003).

As reported earlier, the bonds were placed on the MICEX on April 19 via closed subscription among legal entities through a competition to set the level of the first coupon. As a result, the first coupon was set at 11% annualised. In compliance with the issue documents, the same coupon rate was also set for the entire 10-year period to bond maturity.

The bond issue was registered on January 12, 2012 by the Moscow Division of the Bank of Russia under the unique state registration number 40102859V.

“NEFTYANOY ALLIANCE Bank and NOMOS-BANK together with MICEX specialists have created a market instrument, which enables Russian banks to raise money for increase of their additional capital in a way that is consistent with Bank of Russia regulations,” said the Chairman of the NEFTYANOY ALLIANCE Executive Board, Oleg Grigor.

“We are optimistic that the instrument will find demand in the Russian banking community and will prove a valuable addition to the practice of subordinated borrowing, which is already widely used by Russian banks, as well as assisting further development of Russia’s financial market infrastructure,” said Valery Golovanov, Director of the Department for Debt Instruments at NOMOS-BANK.

The bond issue organisers were NOMOS-BANK and NEFTYANOY ALLIANCE Bank.