On 27 March 2013 Center-invest Bank placed BO-03 and BO-06 series bonds with a total par value of RUB2.5bn on the MICEX. The bonds mature in three years and carry a put option after 1.5 years. Total demand amounted to RUB4.88bn. Upon completion of book building, the annual coupon rate was lowered to 10.25%. The placement organisers were Zenit Bank and Sberbank CIB.
“The high level of investor interest in Center-invest Bank’s bonds stemmed, first and foremost, from the bank’s unique advantage: investors were offered an attractive rate of return from a low risk issuer,” said Alexander Kovalenko, head of Center-invest Bank’s Treasury and Financial Markets Department. Mr Kovalenko believes that the following factors guarantee stability and create investor trust: the bank’s transparent shareholder structure and its highly reputable shareholders; its high levels of capital adequacy and profitability; and its sustainable and organic growth, as confirmed by its long-term Ba3 rating from Moody’s Investors Service, outlook “stable”.
The issue organisers also note that investors are attracted to Center-invest Bank by its international shareholder structure, its high rankings in both national and international and ratings, its commitment to social responsibility, its five-year sustainable development strategy, its large market share in southern Russia, and its focus on lending to the SME sector.
The total par value of Center-invest Bank’s second issue bonds currently being traded is RUB3bn. The total par value of all Center-invest Bank bonds currently being traded is RUB6.5bn.
Providing a comprehensive range of services for the local population and businesses in southern Russia, Center-invest Bank is one of the leaders in the region’s financial market. The funds raised from the bond placement will be used to expand SME lending and consumer lending in southern Russia, and to finance post-crisis development projects in various sectors of its economy.
Center-invest Bank has always stood out for its innovative approach to business, with strategies that incorporate social responsibility and the application of best international practice and modern banking technologies to promote southern Russia’s economic development.