Russian Standard Bank Sells UAH 100m Bond
PJSC Russian Standard Bank (Kyiv, Ukraine) has successfully sold UAH 100m of D-series. The three-year bonds pay a quarterly coupon of 20% in the first year and have embedded put options exercisable 12 and 24 months after the placement. The issue is guaranteed by the parent bank, JSC Russian Standard Bank (Moscow, Russia), a leading player on the Russian consumer lending market. The bonds were underwritten by Dragon Capital, which placed the whole issue within three weeks.
The Bank plans to use the proceeds to expand its retail lending programs in Ukraine. “We see significant growth potential in the consumer lending market and will continue to strengthen our presence among leading banks in this segment,” said Russian Standard Bank CEO Igor Doroshenko. “We have enjoyed strong growth in our loan portfolio and customer base in the first five months of 2013. Given the scale of our business, deposits are currently our main funding source, but bond issuance forms an important element of our funding base diversification strategy. Moreover, we do not look at bonds as merely a funding source. For us it is also a means to strengthen relations with investors ahead of further capital market transactions.”
Brian Best, Dragon Capital’s Managing Director, Investment Banking, commented: “We consider this placement a rare example of a true market sale of UAH-denominated bonds in recent history. We received applications from a large number of investors including banks, asset management companies, mutual funds and regular corporates. We also managed to attract foreign investors to the placement, which is great news for the market overall. With the whole placement completed in a matter of weeks, we are happy to see the UAH bond market recovering gradually and are confident there is demand among investors for high-quality Ukrainian borrowers.”
The D-series bonds may start trading on the secondary market as soon as the end of June. Dragon Capital will support liquidity in the bonds.
As reported, PJSC Russian Standard Bank has registered two UAH 100m bond issues (series D and E). Books on the E-series bond are expected to open on June 20.
For more information please contact:
Olga Beloblovskaya, Deputy Director, Marketing & Communications, Dragon Capital
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