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A debut bond issue of Joint Stock Bank "Russia" worth RUR 1.5 billion is fully placed

19 July 2007

On 19 July 2007, a full placement was made on the MICEX stock exchange of documentary interest bearing bonds payable to bearer issued for the first time by Joint Stock Bank "Russia" and worth RUR 1.5 billion.

There were 32 bids submitted by the investors with the total volume reaching RUR 2.494 billion. The proposed first coupon rate ranged from 8.60% to 9.25% p.a. and most of the bids were within 8.90% to 9.10% p.a. By the arranger's estimates foreign investors purchased 20% of bonds.

The first coupon rate was set by the auction at placement and amounted to 9.00% p.a. (which is RUR 45.12 per bond), the second coupon rate was equal to the first one, the other coupon rates will be extra set by the Issuer. 

Effective yield to a year put-option amounted to 9.20% p.a., which is below the yield bottom line estimated by the arranger (VTB Bank) before the auction. Such success was underpinned by favorable market, representative impressive membership of the syndication, high credit quality of Joint Stock Bank "Russia" and strong demand from foreign investors and Russian managing companies. 

As a result of the auction, 18 bids were satisfied.

The issue was fully placed during the auction on the commencement day.

VTB Bank acted as arranger and underwriter of the issue.

ABSOLUT BANK was appointed co-arranger of the issue.

Co-underwriters of the issue were RAF-Broker, International Moscow Bank, URSA Bank, MDM-Bank, Promsvyazbank, URALSIB Bank, Novikombank, NORVIK Bank and Russian Funds Investment Group.

Joint Stock Bank "Russia" has a long-term international rating В2 awarded by Moody`s rating agency.

The volume of the bond issue placed by Joint Stock Bank "Russia" is RUR 1.5 billion (State Registration Number 40100328B of 24 May 2007). The issue matures in 1 098 days (3 years). The issue terms provide for a put option at 100% of par due on 23 July 2008. The issue will have semi-annual coupon payments. The rates of the first to second coupons are equal to 9.00%, the other coupon rates will be further set by the Issuer.

JSC VTB Bank is arranger and underwriter of the issue.

National Depositary Center participated as a paying agent and depository of the bonds.

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