Credit Bank of Moscow to buy back $500 mln Eurobonds

March 20, 2017 - Prime


The Credit Bank of Moscow plans to buy back U.S. $500 million worth of Eurobonds maturing in 2018 at $1,077.5 per security, the bank said in a statement on Monday.

The results of the buyback will be announced on March 29.

A banking source also told PRIME that the bank plans to hold a road show of new dollar-denominated Eurobonds in Asia, Europe and the U.S. starting from Wednesday. Citi, Credit Suisse, HSBC, ING, J.P. Morgan, Raiffeisen Bank International, brokerage company Region, SG CIB, and UniCredit Bank will act as organizers of the meetings and the potential placement.
Issuer profile:
CREDIT BANK OF MOSCOW (CBM) is one of the leading privately owned universal banks in Russia, and focuses on providing banking products and services to corporate customers and individuals in Moscow and the Moscow Region. CBM’s corporate banking business is primarily focused on retail and wholesale trading corporate customers, enabling CBM to capitalize on the resilient Russian consumer market. CBM’s retail business is focused on consumer loans to high quality retail customers, with a particular emphasis on cross-sales of retail products to the employees and clients of its corporate customers.

CBM offers a comprehensive range of banking services, including lending, deposit-taking, cash handling, international settlements, trade finance, guarantees and other products. By leveraging its leading cash handling service and payment terminal network, the Bank is able to monitor the cash flows and payment histories of its customers as well as, in the case of many of its retail customers, their employers, which ensures strong portfolio performance and asset quality.

According to INTERFAX-100, as at 1 October 2015, CBM is one of the top five privately owned Russian banks, measured by total assets. The Bank is currently rated BB- with a Negative outlook by S&P; B1 with a Stable outlook by Moody's; and BB with a Negative outlook by Fitch.

CBM was founded in 1992 and acquired by Mr. Roman Avdeev in 1994. Mr. Avdeev beneficially owns 70.0% of CBM’s shares. The European Bank for Reconstruction and Development, International Finance Corporation (IFC) and RBOF Holding Company I, Ltd. (100% owned by the IFC Russian Bank Capitalization Fund belonging to the same group of companies as the IFC) hold 11.2% of CBM’s shares and are represented on CBM’s Supervisory Board alongside with four independent non-executive directors. The remaining 18.8% of the Bank’s shares are owned by other minority shareholders.
Outstanding issues:
8 issuesRUR73,000,000,000
5 issuesUSD2,406,205,000
Issuer rating:
Moody's Investors ServiceB1/StableLT- foreign currency05/30/2013
Moody's Investors ServiceB1/StableLT- local currency05/30/2013
S&P Global RatingsBB-/NegativeForeign Currency LT02/04/2015
S&P Global RatingsBB-/NegativeLocal Currency LT02/04/2015
S&P Global RatingsruAA-/LT National Scale (Russia)10/08/2013
Fitch RatingsBB/NegativeLT Int. Scale (foreign curr.)06/27/2016
Fitch RatingsWithdrawn/National Scale (Russia)02/06/2017
Fitch RatingsBB/NegativeLT Int. Scale (local curr.)06/27/2016
Moody's Interfax Rating AgencyWithdrawn/National Scale (Russia)03/18/2016
Rating Agency RAEX (Expert RA)A (II)/NegativeNational Scale (Russia)03/10/2017
RusRatingWithdrawn/International scale11/08/2016
RusRatingWithdrawn/National scale (Russia)11/08/2016
National Rating AgencyWithdrawn/National scale (Russia)12/31/2008