HOME CREDIT & FINANCE BANK ANNOUNCES SUCCESSFUL PLACEMENT OF RUB 3 BILLION DOMESTIC BOND ISSUE
10/19/2006
Home Credit & Finance Bank (Moody's Ba3/NP/D-, S&P B/C), a leading consumer finance provider in Russia, successfully placed its fourth domestic bond issue for the aggregate nominal amount of RUB 3 billion. The bonds, which have a nominal value of RUB 1,000 each, have been issued at par, will mature in October 2011 and carry a put option for investors exercisable in October 2008 at par. This represents Home Credit & Finance Bank's 4th domestic bond issue, and demonstrates the strong support for the Bank's strategy and further enhances its platform for profitable growth.The coupon will be paid on a quarterly basis with the coupon rate for the first two years being set at 9.95% per annum through an auction held on MICEX Stock Exchange on October 18th 2006. Subsequent coupon rates will be announced by the issuer not later than 7 days prior to the expiration of the put option and cannot be set below 5% per annum.
During the placement process, bids in total amount of RUB 4.033 billion were submitted with around 60% of the issue bought by international accounts, making the issue oversubscribed by 34% above the total amount of RUB 3 billion.
"This transaction will further enhance our ability to fund efficiently our continued growth and increase the diversification of our funding sources. Proceeds from the bond issue will be used to finance our business activities during the upcoming strong business season," says Mr Dmitry Mosolov, Deputy Chairman of the Management Board, Home Credit & Finance Bank.
"We have seen high interest for this issue from foreign accounts supported by strong domestic demand. In current market conditions with tightened liquidity on the local market the success of the placement was due to both good distribution and name recognition of the issuer," says Stepan Amosov, Vice President, Financial Markets, ING Wholesale Banking.
ING BANK (EURASIA) ZAO and ZAO «Raiffeisenbank Austria» acted as Joint Lead Managers of the issue. The syndicate group included KB Citibank ZAO and Deutsche Bank OOO acting as Co-Lead Managers, and Rosbank, IG Capital, IG Aton, HSBC Bank (RR), Soyuz Bank, UralSib and Investment Bank TRUST acting as Co-Managers.
Notes to Editors:
Home Credit & Finance Bank (Moody's Ba3/NP/D-, S&P B/C) has been operating in the Russian consumer loan market since 2002. It has become one of Russia's market leaders with a 28% market share of the point-of-sale credit market as of June 30th 2006.
HCFB offers its clients a wide range of credit products with variable credit terms. As of June 30th 2006, HCFB's products have been offered in 21,400 stores across 1,100 cities throughout Russia. The bank's regional network comprises 57 representative offices across the Russian Federation. At the end of 2004, HCFB entered the revolving credit business in Russia and with over 3 million credit cards in issue to date has become one of the leaders of revolving credit in Russia with 5.2% market share as at the end of June 2006.
HCFB is a member of the Home Credit Group. The companies of the Home Credit Group have been operating in the Central and Eastern European consumer loan markets since 1997. The Home Credit Group belongs to the PPF international group of companies which has interests in insurance and consumer finance, and provides complex asset management services. During its 15 years in business, PPF has become a leading international financial investor, managing assets of approximately USD 10 billion as at the end of 2005.
10/19/2006
