Credit Bank of Moscow Places Perpetual Subordinated Eurobonds Totaling $350 Million at 7.625%

Strategic Insights -

Credit Bank of Moscow is placing perpetual subordinated Eurobonds totaling $350 million at 7.625%, a significant move in the bank's effort to bolster its tier 1 capital. The demand for these Eurobonds has exceeded $1.1 billion, a testament to investor confidence in the bank. This is the third time Credit Bank of Moscow has entered the Eurobond market in a year, following placements of 600 million euros in January and $500 million in September.

Key Takeaways:

  • Credit Bank of Moscow is placing perpetual subordinated Eurobonds totaling $350 million at 7.625%, with the issue's initial yield guidance being 7.875% but lowered to 7.625%-7.75% during bookbuilding.
  • The demand for CBM's Eurobonds has exceeded $1.1 billion, indicating strong investor interest.
  • Citi, ING, JP Morgan, Societe Generale, Sova Capital, Emirates NBD Capital, Gazprombank, and Renaissance Capital are organizing the placement of the Eurobonds.
  • The structure of the bank's perpetual Eurobonds issue includes a 5.5-year call option, and the Eurobonds are to be included in Tier 1 additional capital sources.
  • Credit Bank of Moscow has entered the Eurobond market for the third time in a year, with previous placements in January and September.
  • The Rossium concern is the principal owner of CBM, with Roman Avdeev and the Region group controlling Rossium.
  • As of Q2 2021, CBM ranked 7th in terms of assets in the Interfax-100 ranking prepared by the Interfax Center for Economic Analysis.

Statistics:

  • Total amount of perpetual subordinated Eurobonds placed by Credit Bank of Moscow: $350 million
  • Initial yield guidance for the Eurobond issue: 7.875%
  • Lowered yield range during bookbuilding: 7.625%-7.75%
  • Total demand for CBM's Eurobonds: over $1.1 billion
  • Number of banks organizing the Eurobond placement: 8 (Citi, ING, JP Morgan, Societe Generale, Sova Capital, Emirates NBD Capital, Gazprombank, and Renaissance Capital)
  • Year first Eurobond placement was made: 2022
  • Total amount of Eurobonds placed by CBM in previous placements: $600 million (January) + $500 million (September)

Sources:

  • "MOSCOW. Sept 27 (Interfax) - Credit Bank of Moscow (MOEX: CBOM) (CBM) is placing perpetual subordinated Eurobonds totaling $350 million at 7.625%, a source in the banking sector told Interfax."