OREANDA-NEWS. May 08, 2013. The Alfa Banking Group announced pricing of RUB 10 billion Loan Participation Notes due 2016 and bearing a fixed interest rate of 8.625% per annum (The "Notes").

This deal was a debut EuroRuble offering from a Russian privately owned financial institution. A series of investor meetings were arranged in the USA (Boston and New York) and London on 15th and 16th of April. A final orderbook of close to RUB19bn allowed the Alfa Banking Group to price the transaction with a coupon of 8.625%, at the tight end of the price guidance.

The Notes are issued by Alfa Bond Issuance plc, an Irish special purpose vehicle, at 100% of their face value. The proceeds of the Notes will be on-lent to Alfa-Bank and will contribute to the growth of Alfa-Bank’s loan portfolio.

Andrew Baxter, Deputy Head of the Executive Board and Chief Financial Officer, said, "We consider this EuroRuble issue to be a success for both the Alfa Banking Group and the entire Russian banking sector. This is the first time ever that a Russian private bank has issued Ruble denominated Eurobonds on the international capital market, and we were pleased to see considerable demand from foreign investors. With this transaction we have set a new benchmark for Russian privately owned banks".

The Lead Managers and Joint Bookrunners are Citi, HSBC and Alfa-Bank.