OREANDA-NEWS. July 26, 2013. LLC Rusfinance Bank announced the closing of the order book for its issue of series 13 bonds with a notional value of RUB 4 bln and put option of 1.5 years from date of sale.

During bookbuilding, forty-nine investor bids were received with the coupon rate falling in the range from 8.00% to 8.35% annually. The issue was oversubscribed by nearly three-fold, with demand coming to RUB 12.62 bln.

Upon conclusion of bookbuilding, LLC Rusfinance Bank set the rate for the first coupon at 8.10% annually, which corresponds to an effective yield to put of 8.26% annually.

Despite the high volatility in the global securities markets in recent months, LLC Rusfinance Bank was able to achieve a full subscription with the first coupon rate 55 bps below the upper end of the guidance range.  This once again demonstrates the high degree of trust investors have in the issuer’s credit profile as well as in the company’s future prospects.

Arno Lekler, Chairman of the Board of LLC Rusfinance Bank, commented: “We consider the results of the bookbuilding to be very successful.

The significant oversubscription, which has become a tradition for us, undoubtedly speaks to the continuing high level of interest in the Bank’s financial instruments from investors, notwithstanding the volatility in the securities market.  

We thank all the participants of the placement for their trust and we look forward to further collaboration on subsequent issuances.”

The proceeds from the sale will go towards financing the company’s main line of business, which is consumer lending. The bank plans to continue to develop its main product line: automobile and consumer financing at the bank’s points of sale, general loans, and credit card servicing.

Settlements for the issuance of the series 13 bonds will take place on the MICEX on July 24, 2013.

Arrangers: JSC Rosbank, Sberbank CIB

Information for editors:

LLC Rusfinance Bank is a full subsidiary of JSC Rosbank

Rosbank:

The largest subsidiary structure outside of France of the international finance group Societe Generale

European-level services

One of the top-10 banks in Russia

One of the top-3 retail banks in Russia

More than 3 million individual clients and over 73,000 corporate clients

More than 700 branches, 1,200 points of sale in 340 cities and towns in Russia

3,000 ATM machines

Ratings: Baa3 (Moody's), BBB+ (Fitch)

The best financial institution in Russia according to the authoritative British publication “The Banker”, which is owned by the Financial Times – 2006, 2008

Fourth place among Russian banks in the rating of the 500 most valuable global finance brands according to Brand Finance (The Banker, 2011)

In the top-5 among Russian banks in terms of public trust (ROMIR data, October 2011)

Top ranking among Russian private banks and subsidiaries of foreign banks (The Banker, June 2012).