On May 12, 2010, Russia’s Credit Europe Bank Ltd. successfully priced US$300 million Eurobond with 3 put 2 years maturity and a coupon rate of 7.75%. The deal was the 4th Eurobond deal of Credit Europe Bank Ltd. since 2005. Cit acted as Sole Lead Arranger and Bookrunner.
Despite the turbulent and challenging market conditions during the first half of the week, the size of the deal was increased from US$ 150 million to US$ 300 million due to significant investor demand in a week where a number of deals were pulled out.
• The offering was the 1st Eurobond from Russia since the sovereign issue priced in April
• It represented the largest bond offering ever priced by Credit Europe Bank
• The coupon of 7.75% was the lowest printed by any Russian private bank this year
The book was closed following a road show where the Bank’s representatives met investors in London, Zurich and Geneva.
“Historically successful results, increasing profit even throughout the crisis time and expected potential growth of Credit Europe Bank allowed to attract investors who were looking for safe credit risks in emerging markets. The proceeds of the issue will be used to diversify our funding sources for further growth of our loan book in 2010, thus allowing us to serve the financial needs of our selected portfolio of clients, while maintaining the healthy balance sheet with increasing performance and prudent Risk Management approach” - said Enver Murat Basbay, President of the Bank.
Credit Europe Bank Ltd. (registration number 3311) is a Russian bank with foreign capital, a part of FIBA GROUP that operates in 12 countries. Credit Europe Bank Ltd. is the 46th largest bank in Russia in terms of its asset size and, being a full subsidiary of “Credit Europe Bank NV, Amsterdam”, 10th largest bank in the Dutch banking system, is fully supervised by DNB (Dutch Central Bank) and CBR (Central Bank of Russia). Russian subsidiary was founded in Moscow in 1997 and currently employs more than 2800 employees working in over 90 branches in Moscow and the biggest Russian regions. Bank serves more than 1 000 corporate clients, 10 000 SME clients and more than 2,2 mln. retail clients. The Bank has been rated by both Moody’s (Ba3) and Fitch (BB-). Additional information about the bank can be found on www.crediteurope.ru.
