OREANDA-NEWS. On February 27, 2007 Promsvyazbank reported that the bank’s Board of Directors has made decision to issue 4,5 billion ruble bonds. 4,5 b documentary interest bearing bonds mature in 5 years (1,820 days) and have semi-annual coupon payment. Face value per bond is RUR 1 000.

The bonds will be placed on MICEX by open subscription as an auction to set the first coupon rate. Deutsche Bank acts as lead-manager and international sales coordinator. “We are pleased that this ruble bonds issue will be the largest one amongst Russian private banks, - said Alexander Levkovsky, president of Promsvyazbank. - The funds, attracted at the Russian internal market, will allow Promsvyazbank to diversify funding sources and to reduce risks.

Besides that the borrowing will enhance dynamic development of bank’s retail and corporate business, as well as strengthen of its position in financing small and medium business.” Commenting the news, Yuri Soloviev, head of Global Markets, Russia and CIS, Deutsche Bank Ltd. said: “We prize Promsvyazbank’s achievements on the Russian financial market, its business reputation and good credit history on domestic and international markets. It was a pleasure to work together with Promsvyazbank on this placement”. Currently there is one Promsvyazbank’s issue outstanding worth RUR 600 million.