OREANDA-NEWS. September 27, 2010. The Alfa Banking Group announces pricing of the issuance of USD 1 billion Loan Participation Notes (the “Notes”) due 2017 and bearing a fixed interest rate of 7.875% per annum. Closing of the transaction is expected imminently subject to signing of transaction documentation, reported the press-centre of Alfa Banking Group. 

The Notes will be issued by Alfa Bond Issuance plc (the “Issuer”), an Irish Special Purpose Vehicle, at 100% of their face value and will be guaranteed by ABH Financial Limited (the holding company of Alfa Banking Group, of which OJSC Alfa-Bank is the main operating entity).

The proceeds from the Notes will be used by the Alfa Banking Group to fund the expansion of the Alfa Banking Group’s loan portfolio.

Edward Kaufman, Member of the Executive Board and Co-Head of Corporate-Investment Bank, said, “We consider this international Eurobond issue to be a success for both the Alfa Banking Group and the entire Russian banking sector. We believe it to be a new benchmark transaction among Russian privately owned banks. The Alfa Banking Group was the first of the Russian privately owned banks to do an international transaction in 2010 and to extend its yield curve beyond 5 years.”