TCS Bank Closes Order Book for Issue of Series BO-12 Bonds
OREANDA-NEWS. May 30, 2013. The order book was closed for an issue by Tinkoff Credit Systems Bank (closed joint-stock company) of BO-12 bonds with a notional value of RUB 3 bln and with a put option after 1.5 years after placement.
The order book was opened on May 20, 2013, with coupon guidance in the range of 10.25-10.75% annually. Active interest in TCS Bank’s (CJSC) bond offering allowed the initial coupon rate to be lowered to 10.25-10.40% annually on the final day of book-building. During book-building, bids were received from investors in the range of 10.00-10.50% annually. The total demand for the bonds was RUB 5.1 bln.
Upon conclusion of book-building, the coupon rate for the bonds was set by TCS Bank (CJSC) at 10.25% annually. Taking into considering the market situation, price of the placement, coupon rate and demand for the bonds, TCS Bank (CJSC) made the decision to accept 58 investor bids.
The technical placement of the bonds will take place on the MICEX Stock Exchange on May 28, 2013.
The arrangers of the issuance are NOMOS Bank, Bank OTKRITIE, Promsvyazbank, and Sberbank CIB.
Co-underwriters: Commerts Investments, Pervobank.
The bank plans to use the proceeds raised from the issue to finance its consumer credit program and service its clients in all of Russia’s regions.
Information for Editors:
Tinkoff Credit Systems Bank was founded in 2006 by entrepreneur Oleg Tinkov in order to provide remote credit card services. In mid-2007, the bank began issuing credit cards. In 2009, the bank began to offer bank accounts to the public. The bank is a member of the Deposit Insurance System.
In 2007, the international investment bank Goldman Sachs acquired a stake in Tinkoff Credit Systems Bank, in 2008 the fund Vostok Nafta Investment Limited became a shareholder, and in 2012 Baring Vostok Private Equity Fund IV and Horizon Capital acquired stakes.
The bank issued its one millionth credit card in April 2011, two millionth in April 2012, and three millionth in January 2013. As of March 1, 2013, the bank’s credit card portfolio is the third largest in Russia (RUB 53.2 bln) with a market share of 7.4%
The bank’s net profit (by IFRS) for 2012 was USD 122 mln (USD 68 mln in 2011). In April 2011, Moody’s Investors Service raised the bank’s credit rating to “B2” and in March 2013, Fitch Ratings upgraded TCS Bank’s rating to “B+”.
In 2012, the analytical banking magazine Global Finance recognized Tinkoff Financial Systems as the top internet retail bank in Russia. Global Finance evaluates banks around the world in a number of key areas. TCS Bank is the only remote bank in Russia and the development of remote client services, including mobile and internet banking, are high-priority areas for the bank.
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