On the 26th of March Bank Center-invest has closed its debut issue on the international capital markets – USD 175 Mio of 2 years CLNs (Credit-linked notes).

The project was started right after signing of the syndicated loan facility agreement of the Bank Center-invest for USD 80 Mio, on the 28th of February in London.

Mandate Lead Arranger and Bookrunner of the deal was TRUST Investment Bank, which is the market leader for arranging this type of financing for the Russian Banks. Co-Lead arranger was Commerzbank AG – one of the largest German banks- partner of the Bank Center-invest since 1995.

Initial launching amount of USD50 Mio was increased eventually to USD175 Mio with 51 investors. Overall demand from international financial organizations exceeded USD300 Mio. Coupon rate was fixed at 9% without put option. CLNs are quoted on the secondary market.

Road show took 1 week and covered Moscow, Hong Kong, Singapore, London, Zurich and Geneva. During the meetings with investors (private and investment banks, hedge funds and asset management companies) Center-invest was represented by Olga Vysokova (Head of Representative office in London) and Gregory Chorayan (Head of Treasury and Financial Markets), who presented to the investors the main principles and results of the Bank’s activity, also the strategy of development of the Bank for the next 5 years.

Interest to Center-invest Bank from investors has exceeded all expectations. During the meetings, hundreds of questions were answered about the Bank itself, general investment climat in the South of Russia, banking system in Russia, economy of the South of Russia and place of the Center-invest Bank in the modern Russian banking system.

For the majority of the investors this deal was the first experience of work with the leading regional bank – Center-invest, which makes this deal especially important.

Proceeds from the issue will be channeled to finance SMEs, corporates and population of the South of Russia.

The success of the deal has proved strong business reputation and image of the Bank Center-invest on the international capital markets, increased the investment appeal of the Southern Federal district towards becoming the leader in the sector with free access to the global market of financial resources.

Reference:

In January 2007 Center-invest has signed a loan agreement for USD 20 Mio with National City Bank under OPIC guarantee to finance retail customers of the South of Russia.

In February 2007 the Bank has signed a syndicated loan facility for USD80 Mio with 37 banks from 19 countries participating in the deal.

In February 2007 Center-invest has signed an agreement with Black Sea Trade and Development Bank for USD10 Mio subordinated loan for 7 years.

Total investments of the Bank since the beginning of the year has exceeded USD280 Mio. In accordance with the strategy “South of Russia Plus” the proceeds will be invested in investment programs for the corporates and individuals of the South of Russia.