Sovcombank Registered the Program of Eurobonds Issue for 5 Billion Dollars

  • Banking
  • 17.02.2022 03:15 pm

Sovcombank registered on the Irish Stock Exchange a framework Eurobond program of $5 billion.

The program is designed for five years and provides for the three types of securities - perpetual subordinated (T1), 10-year subordinated (T2) and senior Eurobonds, including green and social bonds.

JP Morgan, Renaissance Capital and Sovcombank act as arrangers of the program, trustee and principal paying agent is Bank of New York Mellon. Documentation for the deal was prepared by the multinational law firms Latham & Watkins and Baker McKenzie.

The actual Eurobond issue may be arranged by both arrangers and banks providing syndicated loans to Sovcombank, including Citi, HSBC, ING Bank, Raiffeisen Bank, Societe General, UniCredit and others.

Sovcombank is an active participant of the Eurobond market. The bank's securities are in great demand from investors: there are four Eurobond issues of Sovcombank totalling 1.2 billion US dollars in circulation. Investors from the US and EU countries, including pension funds, insurance companies and institutional investors bought 62% of them.

"Last year we placed two issues and in both cases, we saw increased interest in the securities from foreign institutional investors. At the peak, demand exceeded supply twofold," said Sergey Khotimskiy, First Deputy Chairman of Sovcombank’ s Management Board.

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