OREANDA-NEWS. August 9, 2011. Dragon Capital has successfully placed bonds for Credit Dnipro Bank with a total nominal value of UAH 100m.

The securities were issued for five years with an annual put option. The coupon yield for the first two coupon periods was set at 15%. Coupon payments will be paid every six months. Initial public offering of the bonds was held on the PFTS stock exchange. The funds will be used to expand the bank’s loan portfolio. Dragon Capital was the exclusive financial advisor and placement agent.

"These local bond issues are part of our strategy to diversify funding sources by raising funds in capital markets. We resumed the practice of coming to public capital markets after 2008. Convinced of significant demand for our bonds by both local and foreign investors, we will continue to carry out public borrowing", said Vitaly Palyura, Deputy Chairman of Credit Dnipro Bank.

"The successful placement of the bank’s bonds confirms investors’ interest in high-quality Ukrainian issuers. We are confident that the placement of these securities will contribute to the success of the bank and will be another step on the way to new borrowings in local and international markets", said Brian Best, Managing Director of Investment Banking, Dragon Capital.

It is assumed that trading of the bonds in the secondary market will begin in mid-July. Dragon Capital intends to maintain the liquidity of Credit Dnipro Bank bonds in the secondary market and be the bonds’ market maker.