By Wendy Van Sickle
Columbus, Ohio, Feb. 7 – Sovcombank issued a $300 million 7¾% subordinated tier 1 bond (//B), according to a news release.
JPMorgan, Sberbank, VTB Capital, Gazprombank, Alfa-Bank, Renaissance Capital and Emirates National Bank of Dubai managed the placement as bookrunners and joint lead managers.
The bank said a strong order book allowed it to tighten the spread by 75 basis points from initial price talk. Demand peaked at $1.9 billion, with the book closing at $1.4 billon.
The bank said the coupon rate is the one of the lowest ever for a dollar-denominated subordinated eurobond issue offered by a tier 1 Russian bank.
Proceeds will be used to increase the bank's additional capital.
The order book had 181 orders, with an eventual allocation of 45% in Russia; 22% in continental Europe; 12% in Asia and the East; 12% in the United Kingdom; and 9% in the United States.
The roadshow took place in Moscow, Dubai, Zurich, Geneva, London and New York from Jan. 24 through Jan. 29.
The bank is based in Moscow.
| Issuer: | Sovcombank
|
| Issue: | Subordinated tier 1 bond
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| Amount: | $300 million
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| Bookrunners: | JPMorgan, Sberbank, VTB Capital, Gazprombank, Alfa-Bank, Renaissance Capital and Emirates National Bank of Dubai
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| Coupon: | 7¾%
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| Ratings: | Fitch: B
|
| Announcement date: | Feb. 7
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