OREANDA-NEWS. On 7 March 2007 Russian Agricultural Bank (RAB) has issued Senior CHF Eurobond. This is the first CHF public Eurobond by a Russian borrower for the last 80 years. The size of the issue is CHF 375 million with coupon 3,583% and the final maturity in 2010. The transaction is rated A3 by Moody’s and BBB+ by Fitch. Dresdner Kleinwort and UBS acted as joint lead managers and bookrunners of the offering.

Following European roadshow, the issue achieved strong participation in Switzerland. In terms of investor type distribution 36% was taken by Asset Managers, followed by Banks (36%), Insurance companies (16%), Pension Funds (7%) and Corporates (5%).

Bonds are issued to provide for the funding of Russian Agricultural Bank’s operations, including lending being performed within the framework of the ongoing national priority project "Agribusiness Development".

The loan currency - Swiss franc - was selected in order to expand the investor base and the scope of instruments issued by Russian Agricultural Bank diversified by types of currencies, and to decrease the cost of funding.

The success of RAB’s Senior CHF Eurobond issue was underpinned by the bank’s unique position in Russian banking sector, clearly defined business strategy and high level of commitment from the state to develop the bank.