With the aim of improving the structure and quality of capital of credit Bank of Moscow (CBM) has implemented a series of successive transactions on the financial market. 6 Nov 2019, ICD successfully closed the deal on raising capital in the amount of 14.7 billion rubles, placing its shares through a public offering (SPO). On borrowed funds the Bank repurchased part of its own Eurobonds in total amount of 150 million USD with the purpose of their subsequent redemption.
Within the SPO, ICD has placed 2 billion 750 million shares at a price of 5.35 rubles per share; a discount to the closing price of the trading session of 5 November 2019 (5,565 rubles) amounted to 3.9%. 56,07% of the total offered shares were acquired by the key shareholder of the Bank JSC «Concern «ROSSIUM». The rest of the volume was purchased by Russian and foreign institutional and private investors.
Simultaneously with the SPO, the Bank repurchased subordinated Eurobonds with maturity in 2027 and a coupon of 7.5% (CBOM-27) in the amount of 100 million U.S. dollars and perpetual bonds with a coupon of an 8.875% (CBOM-perp) in the amount of 50 million U.S. dollars.
14 November 2019 ICD repaid part of redeemed Eurobonds. According to the results of a partial redemption of Eurobonds in circulation are Eurobonds CBOM-27 in the amount of 440 million U.S. dollars, and perpetual Eurobonds in the amount of 540 million U.S. dollars.
Substitution of part of subordinated loans share capital will enable the ICD to reduce the cost of capital, reducing interest expenses of the Bank, and to substantially increase the regulatory capital adequacy for future business growth.
ICD expects earnings from repayment of redeemed Eurobonds will amount to approximately 28 million U.S. dollars (without taking into account savings on coupon payments on the extinguished portion of the securities) and will be reflected in the financial statements for the 4th quarter of 2019.
«Transaction capital optimization (especially SPO) were very successful, including thanks to many years of work of the Bank in capital markets. Managed to improve the structure of capital for further growth, while the generated stock of capital will allow us to move confidently towards our goals. In addition, the results of the roadshow in London, new York, Tallinn, Stockholm, Paris and Frankfurt, we significantly expanded and improved the diversification of our investor base», — said the Chairman of the Board of CBM Vladimir Chubar the deal.
PJSC «Moscow credit Bank» — a universal commercial private Bank offering full range of banking services to corporate and private clients, as well as financial organizations. The Bank included in the list of systemically important credit institutions approved by the Central Bank of Russia.
The Bank was founded in 1992. The beneficial owner of the Bank is businessman Roman Avdeyev. According to the «Interfax-100», at the end of 2018. IBC ranks among the top 3 private banks in terms of assets.
The reliability and stability of the ICD is confirmed by the ratings of leading Russian and international agencies: «A» ACRES, «AND» from «Expert RA», «Ba3» by Moody’s; «BB» by Fitch; «BB-» from S&P.
With more information about the Bank is available on the website http://mkb.ru
The press service of «Moscow credit Bank» email@example.com