Home Сredit & Finance Bank redeems its first domestic bond on October 18, 2005
Moscow, 10/18/2005
Home Credit & Finance Bank (Moody's- Ba3/NP/D-, S&P - B-/C), one of the leading consumer finance banks in Russia, and Raiffeisenbank (Austria), the lead manager of HCFB's debut ruble bond issue, announce the third coupon rate of the RUB 1.5 billion domestic issue.“Our debut RUB 1.5 billion issue was the first foray of Home Credit & Finance Bank into capital markets. In this transaction, we successfully tested our ability to raise funds in the domestic debt market. We redeem our debut bond at this stage because we plan to offer liquid issues of larger volumes in future. Our declared funding strategy also provides for diversification of funding base with other financial instruments such as bilateral and syndicated loan facilities,” said Dmitri Mosolov, deputy chairman of the Home Credit & Finance Bank Management Board.
On October 12, 2005, Home Credit & Finance Bank set the third semiannual coupon rate of the first RUB bond issue at 1% p.a. The decision was adopted with the aim to buy back the entire bond issue and not to re-offer it in the future. This decision entitles all bondholders to present the bonds for redemption on the second coupon payment date, i.e. on October 18, 2005.
The three-year bond issue with a nominal value of RUB 1.5 billion was placed on MICEX on October 19, 2004.
Raiffeisenbank Austria was the lead manager of the issue. The following banks acted as joint lead managers: Vneshtorgbank, Gazprombank, MDM Bank, Petrocommerce Bank, Dresdner Bank, ING Bank (Eurasia), International Moscow Bank, Industry and Construction Bank St. Petersburg, and Standard Bank.
In 2005, Home Credit & Finance Bank successfully placed two domestic bond issues totaling RUB 6 billion, and two Eurobond issues worth USD 425 million, These issues attracted high demand from international as well as Russian investors.
10/18/2005
