OREANDA-NEWS. January 24, 2013. The Notes were issued by SB Debt Issuance Limited under the USD 500 mln Loan Participation Notes Programme registered by SB Bank (LTD) back in 2007. The issue terms are as follows: placement date - 28 December 2012, maturity date - 28 December 2022, fixed coupon rate at 10,5% p.a. with a semi-annual coupon payments. The issue is arranged by Atonline Limited. The paying agent function is performed by Deutsche Bank AG, London branch.

The first 10-year subordinate notes issue to the amount of USD 50mln under the programme was placed by the Bank on 20 December 2007. The issue was then arranged by the investment bank BCP Securities.

"The lack of capital resources is one of the most pressing challenges faced nowadays by Russian banks. Basically, we are observing a sector-wide decreasing in the level of capital adequacy. With our capital adequacy ratio being above 13%, I can't say that we are acutely in need of capital resources, we are stocked enough for now. We just decided to pursue a proactive before-the-event approach in view of tougher capital adequacy requirements and overall pressure around the issue given the latest regulatory initiatives which come quite fast ahead of our current capitalization rates and capacities", says Andrey Egorov, Chairman of the Management Board. "The newly issued subordinate notes will enable the Bank to enhance its Tier 2 Capital and keep on intensive business development track."