By Rebecca Melvin
Concord, N.H., Sept. 28 – Credit Bank of Moscow priced $350 million of perpetual rate reset notes (expected ratings: //B-) at par to yield 7 5/8% initially, according to a syndicate source.
Pricing occurred at the tight end of guidance for a yield of 7 5/8% to 7¾% and below initial talk for yield in the area of 7 7/8%.
The deal, which was initially expected to be $300 million in size, will yield 7 5/8% until the first reset date on April 4, 2027.
The notes are also non-callable until April 4, 2027, and then callable every five years subsequently on dates when the rate resets at the spread to five-year Treasuries at pricing.
Citigroup, ING and JPMorgan were global coordinators and bookrunners of the Rule 144A and Regulation S notes, together with Emirates NBD Capital, Gazprombank and Renaissance Capital also acting as joint bookrunners.
The notes were issued by the bank’s CBOM Finance plc subsidiary.
| Issuer: | CBOM Finance plc
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| Guarantor: | Credit Bank of Moscow
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| Amount: | $350 million
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| Maturity: | Perpetual
|
| Description: | Additional tier one capital rate reset notes
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| Bookrunners: | Citigroup, ING, JPMorgan, Emirates NBD Capital, Gazprombank and Renaissance Capital
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| Coupon: | 7 5/8%
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| Price: | Par
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| Yield: | 7 5/8%
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| Calls: | Non-callable until April 4, 2027 and then callable every five years
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| Rate reset date: | April 4, 2027 and then every five years
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| Trade date: | Sept. 27
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| Settlement date: | Oct. 4
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| Expected rating: | Fitch: B-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Guided to 7 5/8%-7¾% from initial talk for yield in area of 7 7/8%
|
| ISIN: | XS2392969395, US12504PAK66
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