Home Credit & Finance Bank announces placement of its US$200 million Eurobond Issue
Moscow, 03/28/2007
Home Credit & Finance Bank (“HCFB”) [Moody’s Ba3/NP/D- S&P B/C], one of the providers of consumer finance market in the Russian Federation, is pleased to announce the placement of its US$ 200 million Eurobond issue. This transaction represents the third dollar denominated placement for HCFB.Press release not for publication or distribution, directly or indirectly, in or into the United States
The issue size of US$ 200 million with a 3 year tenor was priced to yield at 9.5%. This issue was assigned ratings of "Ba3" and "B" by international rating agencies Moody's and Standard & Poor's.
The lead-managers of the issue were ABN Amro Bank and BNP Paribas, respectively.
PPF banka has acted as co-lead manager on the deal.
The issue was oversubscribed and attracted demand from over 50 investors from institutional and retail accounts across the United Kingdom, Continental Europe, South-Eastern Asia and the United States.
The proceeds of the issue will be used by HCFB to fund its portfolio of point-of-sale consumer loans, advances under credit cards and cash loans, and for general banking purposes.
"The response we received from investors was positive. We believe that our declared communication policy and transparent disclosure is highly valued by the investor community. Furthermore, the reception received at our road-show allowed us to issue the Eurobond under volatile market conditions", Dmitri Mosolov, the Deputy Chairman of HCFB Management board comments
Furthermore, according to George Niedringhaus, Global Head of EM Syndicate, ABN Amro Bank: "Investors were impressed by both the strength of the story and the quality of the management team. HCFB has now established itself as a name in the sector and is has positioned itself to come back to the market in the future".
Luc Cardyn, Head of Credit Syndicate, BNP Paribas, comments: "HCFB delivered a convincing credit story during an extensive roadshow in Asia, the United States and in Europe. Taking advantage of a market window just after the FOMC meeting, the bookrunners executed a US$ 200 million 3 yr benchmark achieving a broad and diversified distribution".
Notes to Editors:
Home Credit & Finance Bank
Home Credit & Finance Bank (Moody's Ba3/NP/D-, S&P B/C) has been operating in the Russian consumer loan market since 2002.
Home Credit & Finance Bank 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.
For further information, please contact:
Alena Zheltova
Head of PR
Home Credit & Finance Bank
Tel: (+7) 495 514 1019
Mobile: (+7) 916 350 3643
E-mail: press@homecredit.ru
Jiri Kasek
Head of Corporate Communications
Home Credit Group
Tel: (+420) 224 559 508
Mobile: (+420) 602 789 100
E-mail: jiri.kasek@homecredit.eu
Important notice:
This press release does not constitute an offer of any securities of HCFB for sale in the United States nor
may the securities be offered or sold in the United States absent registration or an exemption from
registration as provided in the U.S. Securities Act of 1933, as amended, and the rules and regulations
thereunder.
Any public offering of the securities to be made in the United States will be made by means of a prospectus
that may be obtained from HCFB and that will contain detailed information about HCFB and management, as
well as financial statements. However, HCFB does not intend to register any portion of the offering in the
United States or to conduct a public offering of any securities in the United States.
This press release is not an invitation nor is it intended to be an inducement to engage in investment activity
for the purpose of Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom (the
"FSMA"). To the extent that this press release does constitute an inducement to engage in any investment
activity included within this press release, it is directed only at (i) persons that which are outside the United
Kingdom, (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) of the United Kingdom (the
"Financial Promotion Order"); or (iii) persons who fall within Articles 49(2)(a) to (d) ("high net worth
companies, unincorporated associations etc.") of the Financial Promotion Order; and (iv) any other persons
to whom this press release for the purposes of Section 21 of FSMA can otherwise lawfully be made (all such
persons together being referred to as "relevant persons"), and must not be acted on or relied upon by
persons other than relevant persons. Any invitation or inducement to engage in any investment activity
included within the press release is available only to relevant persons and will be engaged in only with
relevant persons." Anyone other than a relevant person must not rely on this press release.
This document is not a prospectus and, to the extent that it may constitute an advertisement, does
not constitute an offer to sell or the solicitation of an offer to purchase notes or other securities of
HCFB. Investors should not subscribe for any securities referred to in this document except on the
basis of the information contained in the prospectus relating to the securities.
This document is an advertisement for the purposes of applicable measures implementing Directive
2003/71/EC (such Directive, together with any applicable implementing measures in the relevant
home Member State under such Directive, the "Prospectus Directive"). A prospectus prepared
pursuant to the Prospectus Directive will be published, which, when published, can be obtained from
the offices of ABN AMRO Bank N.V. and BNP Paribas.
This press release does not constitute or form part of any public offer or advertisement of securities in the
Russian Federation or in any other jurisdiction, and does not constitute any offer, or any invitation to make
offers, to purchase any securities in the Russian Federation or in any other jurisdiction.
Forward-looking statements. Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial performance of HCFB. We caution
you that these statements are not guarantees of future performance and future performance involves risks,
uncertainties, and assumptions that we cannot predict with certainty. Accordingly, our actual outcomes and
results may differ materially from what we have expressed or forecasted in the forward-looking statements.
We do not intend to update these statements to make them conform with actual results.
03/28/2007
