Sovcombank has placed an issue of perpetual subordinated Eurobonds in the amount of USD 300 million with an annual coupon of 7.6%. With strong demand for the Bank’s securities from Russian and foreign investors, the issue was three times oversubscribed. The Bank will use the proceeds to optimise its capital structure for further business growth.

Initially, the benchmark annual yield on the securities was in the range of 7.75%–8.00%. Once the book building was complete, the coupon was reduced to 7.6%, which is 15 basis points below the Bank’s previous issue of similar bonds in early 2020, when the coupon was set at 7.75%. This comfortable level was achieved despite the increase in US Treasury bond yields due to growing inflation around the world.

Demand from investors peaked at USD 932 million. In total, 114 orders were received from major investment and pension funds as well as insurance companies in the United States, the United Kingdom, the European Union, Switzerland, the United Arab Emirates and Singapore. In addition, there was significant demand for the Bank’s securities from private investors and investment funds in Russia.

“Despite the challenging market conditions, we saw a lot of interest in our securities from foreign and Russian investors. This is an indication of the market’s high opinion of the Bank’s development strategy and consistently strong operating performance in recent years. We value our partners’ trust a great deal, and we’re focused on further sustainable development in the future”, said Mikhail Avtukhov, Deputy Chairman of the Management Board and Head of Sovcombank’s Corporate and Investment Business.

In addition to Sovcombank, joint bookrunners included Citi, JP Morgan, Société Générale, Alfa Bank, Emirates NBD Capital, Gazprombank, ING, Mashreq Bank, Raiffeisen Bank International, Renaissance Capital, SberCIB, Sova Capital, Tinkoff, UniCredit and VTB Capital. The bonds were placed on Ireland’s Euronext Dublin exchange.