Alfa-Bank successfully placed ruble-denominated Eurobonds with a record-low coupon rate
January 27, 2020
Alfa-Bank (BB+/Ba1/BB+) placed ruble-denominated Eurobonds for the amount of 15 billion maturing on January 30, 2025. The coupon rate is set at 6.75% per annum; it became the lowest in history of placement of ruble-denominated Eurobonds by Alfa-Bank. The coupon payment is performed twice a year.
Demand exceeded RUB 24 billion, which is 1.5 times more than the final issue volume. Such high demand allowed reducing the price guidance from 7% per annum to the range of 6.75 to 6.85% per annum.
The deal makers were Citigroup and Alfa Bank. Listing will be held on the Irish Stock Exchange.
25 institutional investors, as well as trading firms from Europe, the UK, and Switzerland participated in the deal. The bond issuer was the Irish company Alfa Bond Issuance plc.
The stable macroeconomic environment and good quote statistics in the secondary market for Alfa-Bank marketable ruble-denominated Eurobonds determined a high demand of investors for the new placement.
Issue — Alfa Bank, 6.75% 30jan2025, RUB
Country of riskRussia
Redemption (put/call option)*** (***)
М/S&P/F— / — / —
Company — Alfa Bank
Full nameJSC "ALFA-BANK"