By Reshmi Basu
New York, Feb. 16 - Alfa Bond Issuance sold a $300 million offering of 10-year subordinated lower tier II notes (Ba2/BB) at par to yield 8.635%, according to a market source.
The issuance of loan participation notes comes with five years of call protection. If the notes are not called, the coupon steps by 150 basis points.
Alfa Bank, a Moscow-based privately owned commercial bank, will borrow the proceeds from the sale. Alfa Bond Issuance is a financing unit of Alfa Bank.
Dresdner Kleinwort and JP Morgan were joint bookrunners for the Regulation S offering.
Issuer: Alfa Bond Issuance
Borrower: Alfa Bank
Amount: $300 million
Issue: Lower tier II subordinated loan participation notes
Maturity: Feb. 22, 2017
| Coupon: | 8.635%
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| Issue price: | Par
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| Yield: | 8.635%
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| Spread: | 396 basis points more than Treasuries
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| Call option: | Non-callable for five years, if not called, the coupon steps up by 150 bps
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| Pricing date: | Feb. 16
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| Settlement date: | Feb. 22
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| Joint bookrunners: | Dresdner Kleinwort, JP Morgan
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| Distribution: | Regulation S
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| Ratings: | Moody's: Ba2
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| Standard & Poor's: BB
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