Published on 11/12/2021 in the Prospect News Emerging Markets Daily.
New Issue: Russia’s Sovcombank prices $300 million 7.6% perpetual notes at par
By Rebecca Melvin
Concord, N.H., Nov. 12 – Sovcombank PJSC subsidiary SovCom Capital DAC priced $300 million perpetual loan participation notes (expected ratings: B2//B) at par with a 7.6% coupon, according to a market source.
Pricing came at the tight end of final guidance for the issue, which was in the range of 7.6% to 7¾% after being trimmed from a high 7% to 8% yield.
The subordinated additional tier 1 capital notes are non-callable until the first reset date on Feb. 17, 2027, and every five years thereafter.
The fixed interest rate will be reset at Treasuries plus 636.2 basis points on the reset dates.
Joint lead managers and joint bookrunners of the Rule 144A and Regulation S notes were J.P. Morgan, Securities plc, Citigroup, Societe Generale, Alfa-Bank, Emirates NBD Capital, Gazprombank, ING, Mashreq Bank, Raiffeisen Bank International, Renaissance Capital, SberCIB, Sova Capital, Tinkoff, UniCredit, and VTB Capital.
The proceed s of the notes will finance a subordinated loan to Sovcombank, which plans to use the funds to facilitate an increase in regulatory capital to support future growth.
The bank is based in Moscow.
| Issuer: | SovCom Capital DAC
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| Borrower: | Sovcombank PJSC
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| Issue: | Loan participation notes
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| Amount: | $300 million
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| Maturity: | Perpetual
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| Bookrunners: | J.P. Morgan, Securities plc, Citigroup, Societe Generale, Alfa-Bank, Emirates NBD Capital, Gazprombank, ING, Mashreq Bank, Raiffeisen Bank International, Renaissance Capital, SberCIB, Sova Capital, Tinkoff, UniCredit and VTB Capital
|
| Coupon: | 7.6%
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| Price: | Par
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| Yield: | 7.6%
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| Rate reset date: | Feb. 17, 2027 and every five years thereafter
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| Reset margin: | Treasuries plus 636.2 bps
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| Call features: | Non-callable until Feb. 17, 2027
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| Pricing date: | Nov. 10
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| Settlement date: | Nov. 17
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| Expected ratings: | Moody’s: B2
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| Fitch: B
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| Distribution: | Rule 144A and Regulation S
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| Talk: | 7.6% to 7¾%, revised from high 7% to 8% yield
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| ISINs: | XS2393688598, US84605LAD82 (Rule 144A)
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