TransCreditBank successfully issues its debut Eurobond

On May 3, 2007 TransCreditBank successfully closed the debut Eurobond issue for the aggregate amount of $350 mln with maturity in may of 2010. The coupon rate is set at 7.00%.

TransCreditBank undertook a roadshow in Hong Kong, Singapore, London and Frankfurt, but had to cut it short by two days due to exceptional demand for the issue. With the orderbook closing at US$2.2 bln, the size of the offering was increased from the targeted US$250-300 mln to US$350 mln, while achieving an oversubscription of over 6 times.

The extraordinary investor appetite for this deal saw price guidance tighten twice during the bookbuilding process. The deal, which had an initial price guidance of 7.25-7.50%, eventually priced at the tight end of revised price guidance of 7.00-7.25% at 7.00%.

The transaction achieved wide geographical and investor distribution attracting demand from over 150 accounts. UK accounts were allocated 48% of the issue, 13% went to USA investors, 11% were bought by Swiss investors, 9% of the issue were allocated to Asian accounts, Russia was 4%, Europe and other regions were allocated 15% of the issue. Banks took-up 34% of the issue, fund managers bought 43%, 13% went to hedge funds, retail investors bought 6%, corporates and other investors were allocated 4% of the issue.

The transaction was lead by ABN AMRO Bank and Standard Bank.

“We view borrowings in the international capital markets as a stable source of resources for funding large scale projects for our clients. Successful closing of the deal demonstrates tremendous interest and trust from international investors to the bank and our strategic partner JSC “Russian Railways” – Pushkin S.N., President of TransCreditBank.

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